Masakashi Amamiya, deputy governor of the Bank of Japan: If the interest rate is raised by 1%, the book loss of bonds will reach 28.6 trillion yen.

Masakashi Amamiya, deputy governor of the Bank of Japan: If the interest rate is raised by 1%, the book loss of bonds will reach 28.6 trillion yen.

Even short-term losses in the BOJ’s asset holdings will not affect its ability to properly guide monetary policy.

Uncertainty in Japan’s economic outlook is extremely high.

Inflation in Japan is high now, but may fall back below 2% next year.