Bank of Japan (BOJ) governor nominee Kazuo Ueda said on Friday that maintaining Japan’s monetary easing policy is necessary to support the economy, despite the side effects it has on financial intermediation.
At a confirmation hearing in parliament, Ueda said that he believed it is “appropriate” to continue monetary easing to achieve the bank’s 2 percent inflation target but that he would consider examining the side effects.
“It’s true the policy is having a negative impact on financial intermediation. But the BOJ has taken various steps to ease the side effects. Financial institutions have sufficient capital buffers,” Ueda said….