BREAKING NEWS

BREAKING NEWS

BOJ Wakatabe warns against pricking bubbles with monetary tightening

Now Reading :

BOJ Wakatabe warns against pricking bubbles with monetary tightening

BOJ Wakatabe warns against pricking bubbles with monetary tightening
@ Copyright :
Kim Kyung Hoon(Reuters)
Text size Aa Aa

TOKYO (Reuters) - Bank of Japan Deputy Governor Masazumi Wakatabe said on Thursday that trying to prick asset-inflated bubbles with tighter monetary policy could tip economies into a serious recession.

Instead of trying to pre-empt asset bubbles, central banks should focus on taking quick and sufficient steps to reflate growth in the wake of a financial crisis, he said.

"As downward pressure is exerted on the economy in the wake of a crisis, it would be necessary to respond with vigorous expansionary macroeconomic policies," Wakatabe said in a speech at a seminar.

(Reporting by Leika Kihara; Editing by Chang-Ran Kim)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.