TOKYO Jan 25 Bank of Japan Governor Masaaki
Shirakawa reaffirmed the bank's commitment to maintain powerful
monetary easing on Friday, but he warned that preventing credit
bubbles was also among key roles for central banks across the
"Long-term interest rates will spike and erode the effect of
monetary easing ... if people perceive the BOJ as having shifted
to a policy of recklessly buying government bonds, focusing
narrow-mindedly on achieving 2 percent inflation," Shirakawa
told a news conference.
The BOJ announced on Tuesday its most determined effort yet
to end years of economic stagnation, saying it would switch to
an open-ended commitment to buying assets next year and double
its inflation target to 2 percent.