Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan October 31, 2018. REUTERS/Issei Kato
November 5, 2018
NAGOYA, Japan (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank was aware that prolonged ultra-loose monetary policy could squeeze financial institutions’ margins and potentially destabilize the country’s banking system.
Kuroda also said uncertainty surrounding overseas economies was heightening due to escalating Sino-U.S. trade friction and the rise of protectionism.
“The impact of such problems on Japan’s economy is limited for now,” Kuroda said in a speech to business leaders in Nagoya, central Japan. “But if the problems persist, the effect on Japan’s economy could become bigger.”
(Reporting by Leika Kihara; Editing by Chang-Ran Kim)
