Bank of Japan members nervous about radical monetary policy

(Source: Reuters)

Minutes from a meeting of the Bank of Japan (BoJ) on 3-4 April reveal that there are concerns over governor Haruhiko Kuroda's radical program of monetary policy. Some are worried that if interest rates decline exclessively, this could discourage bank lending and make banks more vulnerable to interest rate risk. One member warned that market functioning could be impaired, as well as causing concern that the BoJ is financing government spending.

Members concurred that the bank should shift away from its gradualistic approach and stop adopting easing measures in an incremental manner.