You are here
Lower borrowing costs could hurt economy: BOJ's Suzuki
[KUMAMOTO, Japan] Bank of Japan board member Hitoshi Suzuki said on Thursday that further declines in borrowing costs could hurt consumer sentiment and the economy by prompting financial institutions to charge fees on bank deposits.
"If the BOJ were to consider and implement specific monetary easing measures, it will take action deemed appropriate at the time while weighing the benefits and demerits of each step," Mr Suzuki said in a speech to business leaders in Kumamoto, southern Japan.
Under a policy dubbed yield curve control, the BOJ guides short-term interest rates at -0.1 per cent and the 10-year government bond yield around 0 per cent via heavy asset buying to achieve its elusive 2 per cent inflation target.