August 29, 2019 / 1:54 AM / 6 months ago

BOJ's Suzuki: Lower borrowing costs could hurt economy

KUMAMOTO, Japan, Aug 29 (Reuters) - Bank of Japan board member Hitoshi Suzuki said on Thursday that further declines in borrowing costs could hurt consumer sentiment and the economy by prompting financial institutions to charge fees on bank deposits.

“If the BOJ were to consider and implement specific monetary easing measures, it will take action deemed appropriate at the time while weighing the benefits and demerits of each step,” Suzuki said in a speech to business leaders in Kumamoto, southern Japan.

Under a policy dubbed yield curve control, the BOJ guides short-term interest rates at -0.1% and the 10-year government bond yield around 0% via heavy asset buying to achieve its elusive 2% inflation target. (Reporting by Leika Kihara Editing by Chang-Ran Kim)

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