Bank of Japan Governor Ueda sees the bright side of higher interest rates

Bank of Japan Governor Ueda:

• BOJ’s massive monetary easing, including YCC, was a necessary process towards achieving our price target.
• We acknowledge BOJ’s massive stimulus has caused various side effects.
• From a long-term perspective, rising interest rates will help improve financial institutions’ profits.
• Rise in long-term interest rates will push up corporate funding costs, but also need to take into account how the improving economy will underpin their profits.
• Survey, data on bank lending, firms’ funding conditions show they are in good shape.
• Accommodative monetary environment continues to support Japan’s economy.

USD/JPY trading higher in its bounce:

This article was written by Eamonn Sheridan at www.forexlive.com.