Policy time horizon must be extended: Shirakawa

The time horizon for rate decisions must be extended as a result of the financial crisis, Masaaki Shirakawa, the governor of the Bank of Japan, has warned.

Shirakawa said in Tokyo on Wednesday that the crisis had highlighted the risk-taking channel of monetary policy, which stemmed from changes in liquidity conditions.

"The prolonged low interest rates under benign financial and economic conditions tend to create over-confidence and thus boost asset prices and collateral values as well as

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