The Bank of Japan needs to raise interest rates to prevent excess borrowing that helped trigger the U.S. subprime mortgage crisis and subsequent financial-market turmoil, central bank Policy Board member Atsushi Mizuno said Thursday.
“Overinvestment amid conditions of ample global liquidity was a major factor in causing the subprime issue,” Mizuno said in a speech in Kofu, Yamanashi Prefecture. The market turmoil “is proof that keeping rates at levels that stray from fundamentals may actually cause instability.”
Unable to view this article?
This could be due to a conflict with your ad-blocking or security software.
Please add japantimes.co.jp and piano.io to your list of allowed sites.
If this does not resolve the issue or you are unable to add the domains to your allowlist, please see out this support page.
We humbly apologize for the inconvenience.