BOJ Has No Reason to Add Monetary Easing: Fmr. Policy Board Member

The transcript discusses the fluctuating economic indicators in Japan, highlighting weaknesses in the manufacturing sector and consumer sentiment. It covers government measures to counteract the effects of a consumption tax hike, including temporary subsidies. The discussion then shifts to monetary policy, examining the potential extension of forward guidance on low interest rates and its limited impact on stimulating demand. Finally, the transcript explores the negative effects of low interest rates on the financial sector, particularly insurance companies, and the challenges in increasing credit demand.

In what ways might low interest rates fail to stimulate aggregate demand?

What are the potential consequences of lowering interest rates on the financial sector?