TOKYO : The Bank of Japan should consider further steps to make its ultra-easy monetary policy more sustainable, such as steepening the yield curve by targeting a shorter maturity than the current 10-year yield, an International Monetary Fund executive said.
"Unlike in other advanced economies, we see inflation in Japan over the next few years moving in the 1per cent range, which is below the BOJ's target," he said. While low borrowing costs have helped companies, they have been criticised for crushing the margin financial institutions earn from lending and draining bond market liquidity
"Now is not the time to do this. It's something to consider if you need to strengthen policy or respond to shocks" by ramping up stimulus, Brekk said.
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