TOKYO: Japanese Finance Minister Satsuki Katayama said on Thursday recent market turmoil has underscored how sharply interest rates can be driven by volatility spilling over from other markets, a dynamic she said had become too significant to overlook.
“Financial markets have seen an excessive degree of volatility since Feb. 26, far beyond what would normally be warranted,” Katayama told parliament.
“One of the key lessons … is that interest-rate increases transmitted from other markets can materialise much more rapidly than we anticipate,” she said.
The spillover effects were widely acknowledged at a recent online meeting with her Group of Seven counterparts, she added.
“This is an area where we need to respond in a renewed and well-considered manner.”
