BoJ head hints at bubble-bursting role for rates

Masaaki Shirakawa, the governor of the Bank of Japan, has indicated that monetary policy should act on asset-price bubbles.

Speaking in Tokyo, Shirakawa acknowledged that establishing how monetary policy related to bubbles was "extremely complex". However, the governor noted that "it might not be mere coincidence" that Japan's asset-price bubble and many other bubbles "were generated when prices were stable or the rate of inflation was declining, a situation in which low interest rates were s