TOKYO: Bank of Japan board member Yutaka Harada said on Thursday the central bank should continue its current monetary stimulus in order for prices and interest rates to eventually pick up.
“Given that current low interest rates were caused by deflationary monetary policy in the past, the only way is to wait for prices and interest rates to rise while continuing current monetary easing aimed at sustaining economic growth,” Harada, a vocal advocate of aggressive monetary easing, said in a speech to business leaders in Oita, southern Japan.
The text of the speech was posted on the BOJ website.
The BOJ’s nine-member board is divided between those like Harada who see room to ramp up stimulus, and those who are more worried about the rising cost of prolonged easing. – Reuters
