Bank of Japan board member Yutaka Harada
- Must ease further without hesitation if achievement of price target is hampered by sudden changes in global economy
- Expect Japan's economy to steadily head toward meeting 2 pct inflation target with new policy framework
- At present, benefits of our monetary easing, including negative rates, exceed the costs
- Important to commit to monetary base in long run given there is long-term relationship between monetary base, inflation expectations
- Japan bank lending will likely increase if deflation is eradicated and boost corporate investment
- See recent rebound in 20-year jgb yields as healthy given past falls to around 0.1 pct was excessive
- Under current circumstances, don't think negative rate policy will hurt bank profits enough to have negative impact on overall economy
- Japan is quite distant from reaching limits of monetary policy
more to come
More (via Dow Jones:
- shouldn't hesitate to ease more if 2% inflation target deemed hard to hit
