Deputy Governor of the Bank of Japan Wakatabe confirmed that negative interest rates reduce the profits of banks. His most prominent comments were as follows:
- Side effects of negative interest rates have not yet shown results.
- The benefits of expansionary monetary policy go beyond negative effects.
- Raising interest now may push the Japanese economy into recession again.
- There are advantages and disadvantages of monetary policies all over time.
- We must keep in mind the damage caused by low interest on banks' profits.
- The Bank of Japan continues its expansionary monetary policy as price expectations increase.
- The Bank will take all necessary measures until inflation reaches 2%.
- The bank is unlikely to suffer from excessive inflation if it maintains the inflation target.
- The Bank of Japan has tools that may be used either to facilitate or tighten.