BOJ’s Kuroda to consider bank profitability in guiding policy

Bank of Japan (BOJ) Governor Kuroda acknowledged the undesirable impact of negative rate policy on bank profitability and assured markets that the central bank would take that into consideration while guiding policy.

BOJ announced a major shift from targeting monetary base to targeting yield curve at September meeting. Expert say the bank intends to engineer a steeper yield curve in order to compensate banks for the loss due to negative rate policy.