Negative interest rates in Japan 'welcome': senior IMF official

Tokyo

THE controversial decision by the Bank of Japan (BOJ) under its governor Haruhiko Kuroda to introduce negative interest rates has won the backing of a senior official at the International Monetary Fund (IMF) as the Japanese government moves to ensure the central bank's policies can be implemented smoothly from now on.

"We welcome (the recent introduction of negative interest rates) as a step to achieve the BOJ's inflation target," IMF deputy managing director Mitsuhiro Furusawa said in an interview with The Business Times in Tokyo. "It expands the tools of the central bank and shows the strong determination of Mr Kuroda," he added.

Mr Furusawa also welcomed the recent commitment by finance ministers and central bank governors of the Group of 20 (G-20) advanced and emerging economies to "use all policy tools" available to restore glo…