Bank of Japan's executive director and incoming deputy governor, Shinichi Uchida, on Friday argued that the central bank must push through with the current ultra-loose monetary policy to support the country's economy.
"The right thing to do is to come up with ways to mitigate the side effects, effectively maintaining existing policies," Uchida went on. "We have seen some side effects on financial institutions, but the benefits of the current policy outweigh the costs," he added, stressing it would be a "mistake" to make changes to the monetary policy solely to address the negative sides.
"The surge in consumer inflation has hit households, especially low-income ones," Uchida stressed. Kazuo Ueda, the Japanese government's nominee for the next governor of BoJ, also called the bank's low interest rate policy "appropriate."
