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Japan Finance Min. unsure about effects of ECB negative rate policy

June 6, 2014

TOKYO, June 6 (KUNA) -- Japanese Finance Minister Taro Aso said on Friday he is not sure whether the European Central Bank's (ECB) newly-introduced monetary easing will yield positive results.

"It is uncertain at this stage if a negative interest rate policy introduced by ECB will bring good or bad results," Aso told a press conference.

On Thursday, the ECB announced an unconventional package of measures as part of its efforts to prevent deflation and push down the euro, including a negative interest rate for overnight deposits. "The ECB appears to address the problems in advance as concern over deflation is growing," said Aso, adding that the deflation plagued Japan for 10 years.

"If there will be increases of the money supply and the amount of money in the market, we can say their measures prove somewhat effect. The Japanese government will closely monitor how it works," Aso noted. (end) mk.hs

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Source: Kuwait News Agency

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