Kazuo Ueda: Bank of Japan May Resume QE Tools After a Severe Shock

Bank of Japan Governor Kazuo Ueda, one of the pioneers of quantitative easing in the late 1990s, said the central bank might use unconventional policy tools again if Japan faces a major shock. According to Sina Finance, Ueda said the measures had produced some positive effects on the economy and inflation but were not a perfect substitute for interest-rate cuts when rates are positive. He added that the Bank of Japan might have to use the tools again depending on the severity of a shock, and should consider how to minimize negative side effects, including effects on market functioning.