Dow Jones Newswires
TOKYO — Bank of Japan Gov. Kazuo Ueda reaffirmed the bank’s easy policy stance Tuesday, a few days before his first policy-setting meeting as new governor.
“Given current economic, price and financial conditions, it is appropriate to continue monetary easing with current yield curve control,” Ueda told a parliamentary committee.
He said the…
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The Bank of Japan’s (BOJ) senior banker Takako Ueda reaffirmed on Thursday their commitment to maintaining an easy monetary policy stance to support the Japanese economy.
As reported by the Dow Jones Newswires, Ueda is a deputy governor at the central bank and was speaking to the parliament. She noted that the existence of Persistently low inflation means the BOJ must remain diligent in its commitment to its loose policies.
Ueda added that while the BOJ had not seen any appropriate conditions that would require it to make changes in monetary policy, the bank could still shift its plans if the economic situation changes.
Ueda stressed that the BOJ’s current policies are “very important”, noting that their effect on the market is “considerably strong”. She argued that the central bank must remain committed to the policy or else it may cause prices to decrease significantly and hurt the nation’s economic growth.
The Bank of Japan has been consistently easing its approach to monetary policy since 2013 in order to support the country’s economic recovery. The BOJ has cut interest rates to below zero and purchases roughly 90 trillion yen (820 billion dollars) in Japanese bonds each year in an effort to stimulate inflation and bolster growth.
Ueda’s remarks come after the BOJ announced earlier this week that it is keeping its interest rate at -0.1 percent. The BOJ also cited that the situation in Japan is nearly stable, although it noted that the economy was still in a fragile state.
The deputy governor reasserted the BOJ’s commitment to their easy monetary policy approach, further demonstrating their commitment to support the Japanese economy. It remains to be seen what effect the central bank’s policies will have on the Japanese markets.
