TOKYO (Reuters) – The Bank of Japan is guiding its ultra-loose monetary policy with an eye on the risk that excessive declines in super-long government bond yields could hurt the economy, a senior BOJ official said on Friday.
“We’re mindful that excessive declines in super-long bond yields, such as those with maturity of 20 years, could hurt public sentiment and economic activity by lowering the interest life insurers and pension funds earn from their investment,” BOJ Executive Director Eiji Maeda told parliament.
“But the current ultra-loose monetary environment is stimulating the economy by spurring capital expenditure and housing investment. That will push up household income and asset prices,” he said.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.