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Japan pours water on Trump's monetary policy quip

Difficulty awaits as BOJ has no escape from monetary easing

Bank of Japan Governor Haruhiko Kuroda

TOKYO -- Japan's central bank is finding itself under increasing pressure to raise the target long-term interest rate, but doing so is going to be far from straightforward. Higher interest rates would send bond prices down, which in turn would harm bank finances as they hold large amounts of government bonds.

The market does not care about the risks, and the Bank of Japan is forced to contain the any signs for rising rates.

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