Kuroda Vows Patience as Negative Rate Pains Spread after 3 Years

Politics

Tokyo, Feb. 16 (Jiji Press)--Bank of Japan Governor Haruhiko Kuroda has vowed to remain patient in maintaining accommodative monetary conditions, as the side effects of the BOJ's negative interest rate policy are increasingly visible.

"We'll continue with monetary easing with patience," Kuroda said at a parliamentary meeting on Wednesday, ahead of the third anniversary on Saturday of the central bank's introduction of the negative rate policy.

The BOJ chief highlighted the bank's commitment to maintaining its current massive easing campaign, including the negative rate policy, with the aim of achieving 2 pct inflation.

Three years ago, the BOJ began to impose an interest rate of minus 0.1 pct, or levy a 0.1 pct penalty, on part of financial institutions' current account deposits at the central bank.

Despite the BOJ's campaign, inflation has remained sluggish in Japan, and the BOJ appears to be far from normalizing its monetary policy at present.

[Copyright The Jiji Press, Ltd.]

Jiji Press