Bank of Japan must tread carefully in normalizing policy, central bank official says
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WASHINGTON :The Bank of Japan must be careful when normalizing monetary policy due to uncertainty about how the economy would react to a new environment of positive interest rates, Seiichi Shimizu, the central bank's assistant governor, said on Thursday. While many advanced economies have long-term inflation expectations anchored at their central banks' 2 per cent target, the situation in Japan is different in that inflation expectations and underlying inflation remain lower, Shimizu said. "In
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