TOKYO (Reuters) – The Bank of Japan (BOJ) will proceed cautiously with inflation-targeting frameworks, Governor Kazuo Ueda said on Monday in a speech to a BOJ-hosted seminar on central banking.
Ueda said estimating the neutral interest rate accurately is particularly challenging in Japan, given the prolonged period of near-zero short-term interest rates over the past three decades.
“The absence of significant interest rate movements poses a considerable obstacle in assessing the economy’s response to changes in interest rates,” he said.
(Reporting by Makiko Yamazaki; Editing by Muralikumar Anantharaman)
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