BOJ's Ueda: Monetary easing may continue after negative rates end

Bank of Japan Governor Ueda Kazuo has stressed that an end to negative interest rates will not necessarily mean the central bank will change its easy monetary policy.

Ueda told lawmakers on Friday that the BOJ will consider whether to continue its massive monetary easing once its goal of stable 2-percent inflation seems assured.

Ueda said "considering the current prospects for future price movements, the accommodative financial environment is highly likely to continue for the time being, even if the bank ends negative interest rates."

He also addressed concerns over the consequences for the central bank's finances of its exit from massive stimulus programs. Analysts expect bond yields to rise, causing the value of government bonds held by the BOJ to decline.

The governor acknowledged that the bank's finances could temporarily deteriorate, but he said it will strive to conduct the right monetary policy while bearing its financial health in mind.