Bank of Japan Governor Kuroda speech in Tokyo, not really adding too much on monetary policy nor his economic outlook.
Headlines via Reuters
- central banks should continue to examine how best to manage inflation expectations within flexible inflation targeting framework
- continued low rates can change risk-taking behaviour of financial institutions, affect financial stability
- no macro-prudential tool kit is perfect
- prolonged low interest rates in advanced nations could amplify capital flows into emerging, developing economies where inflation and interest rates tend to be higher
- capital inflows into emerging economies carry risk of economic disruptions such as sudden outflow of capital
- two types of risks pointed out on impact of monetary policy financial stability, among them risk of “reversal rate”