Bank of Japan Confirms Long Path Ahead to Neutral Interest Rate

Bank of Japan Governor Haruhiko Kuroda stated that the Bank continues its strategy of loose monetary policy, emphasizing that the country's economy has not yet reached a state of sustainable growth, which indicates the need to maintain the current low interest rate. In his speech, Kuroda highlighted that the benchmarks the Bank uses to determine a neutral interest rate remain significantly distant, and that numerous factors must be considered in evaluating the possibility of achieving it in the future.

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