(Reuters) – Bank of Japan board member Hitoshi Suzuki said on Wednesday central bankers need to pay even more attention to the impact that monetary policy has on the bond market.
The BOJ risks falling behind the curve if the side effects of its monetary easing become apparent, Suzuki said in a speech to business leaders in Okinawa, southern Japan.
Japanese households’ lingering worries about the country’s rapidly ageing and shrinking population are one reason why inflation is so tame, said Suzuki, a former commercial banker who joined the board in July last year.
The BOJ adjusted policy last month to allow long-term yields to rise more due to concerns its policy was hurting the financial sector.
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