Commodity price rises raise spectre of bubbles-BOJ

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TOKYO, March 4 (Reuters) – Rises in commodity prices are
accelerating beyond levels justified by growth in demand, partly
due to easy monetary policy worldwide, raising the spectre of
asset bubbles, the Bank of Japan said.

Investors, prompted by the availability of easy money,
increasingly regard commodity products as alternatives to stocks
and bonds, resulting in a strong correlation between prices of
oil and equities, the BOJ said in a private research report
released on Friday.

“If easy monetary policies are sustained, this could
increase the chances of bubbles forming by reinforcing the
investor search for higher returns and their appetite for risk,”
the report said.

Further gains in commodity prices as a result of such
investor behaviour could disrupt the global economy, it said.

Oil prices have shot up to 2-