Business & Finance

BoJ: downside to focusing on price stability alone

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"If a central bank prioritises price stability only ... it magnifies the risk of financial system instability," BoJ Executive Director Masayoshi Amamiya said at a seminar hosted by the Nomura Research Institute.

How to pursue price stability and financial stability at the same time is likely to be the biggest challenge facing central banks of advanced economies for the time being, he said.

Copyright Reuters, 2010