Bank of Japan vows to keep the lid on interest rate
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we dont specify the period such as whether it is one year three years or five years he was quoted as saying1 the bank of japan will not raise interest rates for quite a long time its chief said in an interview published saturday even as its us and european peers tighten monetary policy1 we dont intend to raise them for quite a long time he told the mass-circulation yomiuri newspaper1 the boj has struggled for years to reach the 2.0 percent inflation rate thought necessary to turbocharge japans economy and has defended its decision to maintain monetary easing even as other central banks tighten policy1 after its last policy meeting in july the boj said it intends to maintain the current extremely low levels of short-and long-term interest rates for an extended period of time1 kuroda told the yomiuri that an extended period a phrase borrowed from the us central bank meant quite a long time1 haruhiko kuroda dismissed speculation that the central bank was planning to adjust its super-loose policy aimed at keeping long-term interest rates around zero percent and short-term rates at minus 0.1 percent1 its a commitment that we will maintain the current low levels of rates as long as uncertainty lingers1 his remarks are in sharp contrast to the direction the us and european central banks are taking. the us federal reserve is expected to raise interest rates twice more by the end of the year while the european central bank is exiting massive monetary easing1 kuroda argued that the continuation of the bojs easing policy would naturally lead to 2.0 percent inflation even if later than earlier thought the yomiuri said1 the prospect that japanese interest rates will stay low for the foreseeable future should keep the yen low but the currency has often rallied in recent times due to safe-haven buying in times of financial uncertainty1 mostly recently the yen rose against other major currencies when the turkish lira plunged due to ankaras frictions with washington rattling financial markets1