Comments by BOJ governor Haruhiko Kuroda in Nagoya
- BOJ needs to continue easing persistently to reach price target
- Wants to keep a close watch on effects of trade protectionism
- BOJ needed a big policy change in 2013 because of deflation
- Rate hike by BOJ could steepen yield curve but doing this now won't help banks
- This is because the economy could worsen as a result
- Priority is to persistently maintain easing policy to hit price target
- BOJ will do so while looking at long-term challenges for the banking sector
Kuroda following up on his earlier comments here. He's basically saying that banks shouldn't expect help from the BOJ currently even as their profit margins continue to shrink on the back of negative interest rates. It isn't anything new but there has been increased scrutiny on the BOJ lately as banks are being squeezed badly as a result of the central bank's easing policies.
