Bank of Japan Governor Haruhiko Kuroda said on Monday the country’s economic fundamentals remain strong and will be reinforced by the positive effects of the central bank’s negative interest rate policy.
Kuroda countered criticism that the BOJ’s decision in January to adopt negative interest rates has failed to boost stock prices or arrest an unwelcome rise in the yen.
“The decline in yen interest rates and the fact that further monetary easing is possible – all else being equal – have a positive impact on asset prices,” Kuroda said in a speech. “At the moment, these effects are being outweighed by excessive risk aversion among investors around the globe.”
[Source:- Reuters]
