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BOJ's Sato Criticizes Negative Rates, Urges Flexible Policy Framework

Posted by Chris Advincula on Jun 2, 2016 6:17:18 AM

(Jun 2 Reuters) Bank of Japan board member Takehiro Sato criticized the central bank's negative interest rate policy as counter productive and urged the BOJ to adopt a policy framework more suited for a long-term battle to beat deflation.

He also said the BOJ should not persist in achieving its 2 percent inflation target "at all cost" as price rises unaccompanied by wage gains would cool consumption, suggesting his opposition to any further monetary expansion.

Sato, a former bond market strategist who voted against the BOJ's January decision to adopt negative rates, said on Thursday the concept of charging banks for holding excess reserves had pushed down bank stocks and had hurt household confidence.

Click on the link below to see the full story from Reuters: (by Leika Kihara)

BOJ's Sato criticizes negative rates, urges flexible policy framework

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Topics: Forex Trading, USD/JPY, Fundamentals, BOJ. Fed, BOJ Monetary Policy

 

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