BOJ’s Masai sees downside risks to price outlook

KOBE, Japan (Reuters) – Bank of Japan board member Takako Masai said on Wednesday risks to the country’s inflation outlook were skewed to the downside on uncertainty over how broadly companies would raise prices.

“Personally, I think the risks to the economy are limited while those to prices are very high,” Masai said in a speech to business leaders in Kobe, western Japan.

She added that the BOJ must scrutinize both the effects and side effects of its massive stimulus program, given that five years had passed since it was adopted.

Under a policy framework adopted last year, the BOJ guides short-term interest rates at minus 0.1 percent and the 10-year government bond yield around zero percent.

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