BOJ Governor Masaaki Shirakawa addressed the central bankers reunion in Kansas City with a message of warning against sustained low rates. This ran counter to other Policy Makers that are urging their peers that are thinking on raising rates to do so at a lower pace.
“Monetary policy should avoid accelerating a bubble through creating unfounded expectations for the continuation of low rates,” Shirakawa said at the Kansas City Federal Reserve’s annual retreat, the text of his Aug. 22 speech showed on Monday.
The comment has a sense of irony as the Bank of Japan has held the 0.1 percent rate without change since December 2008. It will be interesting to see if anybody follows Mr. Shirakawa’s advice, even the central bank he leads.
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