Bank of Japan Deputy Governor Negative interest rate policy “Need to watch side effects carefully” December 12, 19:28
The Bank of Japan's Vice President Amemiya attended a press conference in Okayama City, and the “negative interest rate policy,” which is one of the major monetary easing measures. He showed that he needed to see it.
The Deputy Governor Amemiya of the BOJ held a press conference after exchanging opinions with the local business community in Okayama City on the 12th. In this context, Vice President Amemiya stated that he is working on a negative interest rate policy with the consciousness of how to balance the effects of mitigation and side effects and maximize the effects of monetary easing.
As a side effect of the negative interest rate policy, Amamiya Vice-President said that financial institutions' profits deteriorated and they became cautious about financing, and that pension management became difficult and the consumer's future anxiety increased. He said, “It is necessary to judge various risks comprehensively,” and recognized that it is necessary to carefully look at whether side effects will impair the mitigation effect.
The BOJ has clarified the possibility of further reducing short-term interest rates that have already been negative if necessary at the last October meeting. The next meeting to decide monetary policy will be held next week, but it is likely that the decision will be made taking into account these side effects.