Bank of Japan governor warns unwinding ultra-loose policy is ‘serious challenge’
The Bank of Japan will proceed carefully with raising interest rates to avoid bond market volatility and any adverse impact on financial institutions, its governor has said, warning that unwinding the central bank’s ultra-loose monetary policy will be a “serious challenge”.
- “When we normalise short-term interest rates, we will have to be careful about what will happen to financial institutions, what will happen to borrowers of money in general and what will happen to aggregate demand,”
- “It is going to be a serious challenge for us.”