BOJ's Kuroda: Japanese policy having intended effects

Bank of Japan (BOJ) Governor Kuroda is appearing in parliament today, noting that Japanese policy having intended effects.

Key headlines

QQE with negative interest rates exerting intended effects on economy

Unavoidable for monetary easing steps to affect banks' earnings

Declines in bank stocks, expansion of credit spread due to investors' risk aversion, happening in other countries too

Technically possible to push interest rates further into negative territory

Can't say now by how much BOJ can push rates deeper into negative territory as depends on impact on banks' earnings, cost of holding cash

Now is time to scrutinise policy effect of latest decision to adopt 0.1 pct negative rate