Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details
BOJ deputy vows to maintain monetary stimulus despite price pressures
2/2
© Reuters. Bank of Japan Deputy Governor Masayoshi Amamiya speaks during a Reuters Newsmaker event in Tokyo, Japan July 5, 2019. REUTERS/Issei Kato/Files
2/2
© Reuters. Bank of Japan Deputy Governor Masayoshi Amamiya speaks during a Reuters Newsmaker event in Tokyo, Japan July 5, 2019. REUTERS/Issei Kato/Files
2/2
By Tetsushi Kajimoto
TOKYO (Reuters) - The Bank of Japan must maintain current monetary stimulus to create sustainable increases in prices, corporate profits, jobs and wages, its deputy governor said on Tuesday, dismissing speculation about an early exit from accommodative settings.
With inflation in Japan far below levels in the United States and elsewhere, the BOJ is lagging well behind other major central banks in dialing back crisis-mode stimulus.
However, surging global commodity prices and the weakening yen have boosted the cost-push inflation, raising speculation among investors that the BOJ may shift away from its current stimulus policy.
Masayoshi Amamiya shrugged off the chance of early exit from stimulus policy.
"What's important is to continue our powerful monetary easing to firmly support economic activity of companies and households," Amamiya told lawmakers.
If monetary stimulus is reduced now, that would cause downward pressure on the economy, making 2% inflation even more of a distant target, Amamiya added.
Amamiya and finance minister Shunichi Suzuki, both appearing in the same parliament session, warned against the yen's rapid weakening, calling recent excess volatility in the foreign exchange market "undesirable".
Suzuki said he was communicating with U.S. and other currency authorities to respond to currency moves as appropriate, following the Group of Seven (G7) advanced nations' agreement on currencies.
That agreement calls for market-determined exchange rates and the need to consult with G7 members on action in the currency market while acknowledging the adverse effects excess volatility and disorderly movements can have on economy.
The Ministry of Finance, which is responsible for currency policy, holds foreign reserves worth $1.35 trillion that it can use when needed for currency intervention through the BOJ, Suzuki said, without elaborating.
Related Articles
China vows timely policy measures to cope with economic risks
By Reuters - Jun 28, 2022
BEIJING (Reuters) - China will roll out tools in its policy reserve in a timely way to cope with more economic challenges, as COVID-19 outbreaks and risks from the Ukraine crisis...
BOJ’s Attack on Speculators Leads to Futures Liquidity Drying Up
By Bloomberg - Jun 27, 2022
(Bloomberg) -- Liquidity continues to worsen in Tokyo’s fragile bond market amid echos of the Bank of Japan’s robust defense against speculators betting it would tweak yield curve...
Japan says hard to confirm impact from Russia's debt default
By Reuters - Jun 27, 2022
1
TOKYO (Reuters) -Japanese Finance Minister Shunichi Suzuki said on Tuesday that it was "a little difficult" at present to confirm the definite impact on Japan from Russia's debt...
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.