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MNI BRIEF: Ex-BOJ Chief: Prolonged Easy Policy Not Effective

TOKYO (MNI)

A former Bank of Japan governor Masaaki Shirakawa warned that prolonged easy monetary policy is failing to to have the expected impact, the Nikkei reported on Wednesday.

“The scale of the BOJ’s balance sheet has considerably expanded but consumer prices didn’t rise,” Shirakawa said in an interview with the newspaper, adding "low economic growth is caused by the drop of potential growth rate, not prices and monetary policy.”

He also said that the rise of import prices will squeeze corporate profits and it is unlikely that a full-fledged price rise occurs in Japan.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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