BOJ’s Kuroda says prolonged monetary easing could hurt financial institutions

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Bank of Japan’s (BOJ) governor Kuroda on Thursday said that the central bank must stay vigilant prolonged monetary easing could weigh on financial institutions and hurt financial intermediation. 

Key quotes

  • BOJ is internally studying the effect of changes in rates. 
  • No signs now banks are taking excessive risk. 
  • Inflation to gain momentum as the GDP gap remains positive.
  • Wage growth somewhat weak given tight labor market.