Bank of Japan Governor Kazuo Ueda pointed out some positive potential aspect of having higher interest rates under normal economic conditions while also reiterating his pledge to continue with monetary easing patiently in the pursuit of stable inflation.
“The most obvious benefit of a slightly positive inflation rate is larger room for monetary policy responses to an economic downturn,” Ueda said in a speech Monday at a conference hosted by the Keidanren, Japan’s biggest business lobby, in Tokyo.
