BoJ's Yamaguchi: Maintaining Emergency Conditions For A Long Time Might Hamper Recovery

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Friday, Bank of Japan's Deputy Governor Hirohide Yamaguchi warned that retaining government stimulus measures for "a long time" might impede a recovery in the nation's financial industry. The remark follows close on the heels of yesterday's decision to hold the key interest rate at 0.1%, with policy makers observing that the economy was showing "signs of recovery."

"What to do with these special measures should be decided in line with the degree of improvements in corporate finance and market conditions," Yamaguchi said in a speech at a euromoney forum in Tokyo.

"We need to pay heed to the risk that keeping these steps in place for long could hamper an autonomous recovery in market functions and distort asset distribution."

Yamaguchi said that the central bank is seeing a "positive mechanism" in the economy as exports and production benefit from improvements in the global economy.

Friday, Bank of Japan's Deputy Governor Hirohide Yamaguchi warned that retaining government stimulus measures for "a long time" might impede a recovery in the nation's financial industry. The remark follows close on the heels of yesterday's decision to hold the key interest rate at 0.1%, with policy makers observing that the economy was showing "signs of recovery." (Market News Provided by RTTNews)