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Some in BOJ warned of hit to bank profits from easy policy: March minutes

Published 05/07/2019, 08:22 PM
Updated 05/07/2019, 08:25 PM
© Reuters. FILE PHOTO: A sign board of Bank of Japan is displayed at the headquarters in Tokyo

TOKYO (Reuters) - A few Bank of Japan board members said the central bank must pay attention to the impact that its prolonged ultra-loose monetary policy was having on regional banks' profits, minutes of their rate review in March showed on Wednesday.

The negative impact of ultra-easy policy on regional banks' profits and equity capital could "gradually materialize" and prompt more banks to take excessive risks to secure profits, those board members were quoted as saying.

At the two-day rate review that ended on March 15, the BOJ kept monetary policy steady despite cutting its assessments on exports and output amid heightening global economic risks.

© Reuters. FILE PHOTO: A sign board of Bank of Japan is displayed at the headquarters in Tokyo

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