FUKUOKA, Japan, Nov 29 (Reuters) - Bank of Japan board member Takako Masai on Thursday stressed the importance of maintaining a massive stimulus programme to ensure the economy sustains momentum to achieve the central bank’s 2 percent inflation target.
But she also said the BOJ must carefully assess the costs and benefits of its ultra-loose policy.
“Monetary easing can stimulate the economy. On the other hand, prolonged low rates could have adverse effects on bond market functions and financial institutions’ profits,” Masai said in a speech to business leaders in Fukuoka, southern Japan. (Reporting by Leika Kihara; Editing by Chris Gallagher)