BOJ member sees reserve cut problem

According to minutes of the Bank of Japan's April 10-11 board meeting, published Wednesday 24 May, a policy maker said a rapid reduction in reserves by the central bank may spur speculation of an interest-rate increase from near zero.

The member said ``there had been growing speculation among market participants that the zero interest rate policy would be terminated earlier than expected,'' show the meeting's minutes, released in Tokyo. ``Thus there was a risk that such speculation would incre