Kuroda: Japan's financial institutions resilient to rise in bond yields

FXstreet.com (Barcelona) - During his speech before the Japan Society of Monetary Economics at Hitotsubashi University on Sunday, BoJ governor Haruhiko Kuroda urged Japan's commercial banks, which are sufficiently protected against losses, to step up lending, which should bring down deflation.

"Japan's financial system as a whole seems to possess sufficient resilience against such shocks as a rise in interest rates and deterioration in economic conditions," the BoJ head said adding that he did not see signs “at this point of excessively bullish expectations in asset markets or in the activities of financial institutions.” He added that for this reason no monetary policy tightening was projected for the nearest future.

Minutes from the BoJ monetary policy meeting, released later on Sunday, revealed however that some of the policy makers were worried that the central bank's 2% inflation target would be difficult to reach by the end of March 2016. Japanese shares fell on the news.