Any recovery in the world economy will be mild as it will take considerable time to get rid of excesses built up during the growth years, the governor of the Bank of Japan said on Monday. Speaking just days after the central bank upgraded its assessment of Japan's economy for the first time in nearly three years, Masaaki Shirakawa said both Japan and the world economy still faced significant risks and uncertainty despite some bright signs.
He added that the BoJ needed to keep a close eye on conditions in corporate finance, suggesting the central bank was in no hurry to scrap the unconventional measures it has put in place to help companies raise funds. "Given that high economic growth continued for many years prior to the current crisis, the possibility that adjustments of excesses will take considerable time cannot be ruled out," Shirakawa said in a speech to business leaders.
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