Bank of Japan Sakurai: Must take into account Japan's flattening yield curve

FILE PHOTO: Bank of Japan's (BOJ) board member Makoto Sakurai speaks during an interview with Reuters at the BOJ headquarters in Tokyo, Japan, September 1, 2016. REUTERS/Toru Hanai

KOBE, Japan (Reuters) - Bank of Japan board member Makoto Sakurai said on Wednesday the central bank must take into account the fact its ultra-loose monetary policy has led to a flattening of the yield curve.

“It’s true the yield curve has flattened quite a bit. We need to take this into account in guiding policy,” Sakurai told a news conference after meeting with business leaders in Kobe, western Japan.

Sakurai made the comments, when asked about a proposal by the International Monetary Fund that the BOJ should consider targeting a shorter maturity for its long-term bond yield target.

Reporting by Leika Kihara; Editing by Chris Gallagher