FXStreet (Mumbai) - Bank of Japan Governor Haruhiko Kuroda, unlike the ECB sees no need to slash BOJ’s rates further into the negative territory. He defended the BOJ’s stance to hold rates steady by mentioning that in in Japan the borrowing costs were already very low on account of the central bank's aggressive asset purchases (QQE). The European Central Bank on 3rd December cut deposit rate by 10 basis points to ensure financial institutions step up lending and not park money with the central bank. Kuroda noted "Our QQE has had an intended impact on the economy and financial markets. Banks have been increasing their loans to the real economy ... Rebalancing has also been taking place". "So we don't think we should implement negative deposit interest rates," he said. Kuroda has that excessive financial regulation would hinder banks' profit-making activity. He observed "From a long-term perspective, in order for the financial system to ensure stability and in turn contribute to sustainable economic growth, financial institutions need to be sufficiently profitable through active and innovative financial intermediation". He feels it is necessary to get rid of “regulatory excess, inconsistency among regulations, and uncertainty regarding the regulatory environment”. For more information, read our latest forex news.