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

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.