TOKYO (Reuters) – Bank of Japan Deputy Governor Masazumi Wakatabe said on Monday inflation expectations would heighten and lead to a natural increase in long-term interest rates if the central bank “patiently” maintained its massive stimulus program.
Wakatabe also said he was mindful that the demerits of prolonged monetary easing, such as the damage years of low rates inflict on financial institutions’ profits, could accumulate.
“The merits and demerits of the BOJ’s monetary policy change over time,” Wakatabe told parliament.
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