BOJ must take into account side-effects of easy policy – regional bank head

TOKYO, March 13 (Reuters) – Risks surrounding Japan’s economy are heightening but the central bank must take into account the side-effects of its ultra-loose monetary policy, the head of the country’s regional bank lobby said on Wednesday.

“The BOJ said it will achieve 2 percent inflation in two years. But six years have passed” since the implementation of a radical stimulus programme, Takashige Shibato, head of the Regional Banks Association of Japan, told a news conference.

“The policy has provided sufficient benefits to the economy. On the other hand, various side-effects are emerging in areas like financial intermediation and bond market functions,” he said. “We hope the BOJ takes these into account.” (Reporting by Leika Kihara Editing by Chang-Ran Kim)

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