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