BOJ’s Harada: Benefits of monetary easing, including negative rates, exceed the costs

More comments flowing in from the BOJ board member Harada, via Reuters, expressing his take on the Japanese economy and central bank’s monetary policy.

Key Headlines:

Expect Japan's economy to steadily head toward meeting 2 pct inflation target with new policy framework

At present, benefits of our monetary easing, including negative rates, exceed the costs

Important to commit to monetary base in long run given there is long-term relationship between monetary base, inflation expectations

Japan bank lending will likely increase if deflation is eradicated and boost corporate investment

See recent rebound in 20-year jgb yields as healthy given past falls to around 0.1 pct was excessive

Under current circumstances, don't think negative rate policy will hurt bank profits enough to have negative impact on overall economy

Japan is quite distant from reaching limits of monetary policy