TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Wednesday that interest rates would rise when the central bank’s 2 percent inflation target is achieved although it’s unlikely borrowing costs would increase anytime soon.
“It is unthinkable that long-term interest rates would stay around zero percent when the 2 percent price goal is achieved,” Kuroda told a parliament committee.
“If (further) easing is necessary, interest rates could be lowered further as needed. On the other hand, interest rates would rise if the price stability target is met.”
Reporting by Tetsushi Kajimoto; Editing by Shri Navaratnam