Bank of Japan Governor Warns of Challenges in Unwinding Ultra-Loose Policy and Achieving 2% Inflation Target

The governor of the Bank of Japan has warned that unwinding the country's ultra-loose monetary policy is a "serious challenge," as it could lead to a sharp rise in long-term interest rates and destabilize the financial system. The central bank has been implementing aggressive stimulus measures for years to combat deflation and boost economic growth, but the governor's comments highlight the difficulties in reversing these policies without causing negative consequences.