Economy

BOJ Governor Kuroda’s remarks at a news conference By Stocksak


© Stocksak. FILEPHOTO: Haruhiko Kuroda (Bank of Japan) attends a news conference in Tokyo, Japan on July 30, 2019. REUTERS/Kim Kyung-Hoon

(Stocksak – The Bank of Japan maintained its dovish guidance and kept ultra-low interest rates in place on Friday. This cements its position as an outlier among global central bank tightening monetary policies as recession fears dampen prospects of a solid recovery.

The BOJ maintained its -0.1% target short-term interest rate and pledged to keep the 10-year bond yield at 0%. This was widely expected.

Here are excerpts from Haruhiko Kurda, BOJ Governor,’s comments at his postmeeting news conference. They were translated by Stocksak.

YEN WEAKNESS

“It is crucial that exchange rate movements reflect economic and financial fundamentals. The recent sharp, unbalanced drop in the yen has increased uncertainty for Japanese companies and is bad for the economy.

FACTORS TO WATCH

“There are many uncertainties which could either push up prices or down, such as the outlook regarding wages and corporate pricing behavior. These factors need to be carefully examined.”

WAGES

“We expect wages will gradually rise in line with recent inflation. We’d love to see more than just numbers, but also the mechanism by which prices and wages are moving.

INFLATION

“For now, we don’t anticipate to be able stably or sustainably achieve 2% inflation next financial year.”

JAPAN ECONOMY

“I don’t think the weak yen offers a big opportunity to Japan’s economy. The weak yen is driving up commodity import costs and thereby increasing consumer inflation. These price increases aren’t the type of inflation we want, as they don’t come with wage growth.

BOJ’S INFLATION FORECAST UPGRADE

“There is a greater chance that inflation will rise with wage gains. It is true that we are closer to achieving stable and sustained 2% inflation. We’re not there yet.

IMPACT OF GLOBAL ECONOMIC SLEEPDOWN

“It is true that slowing overseas development could have an impact on exports as well as output. However, as supply constraints diminish, Japan’s exports will continue to rise and output will remain high. Even with the effect of the slowdown in overseas markets, Japan’s economy is expected to rebound.”

News Source and Credit

Stocksak Editorial

We are a financial blog that covers topics such as investing, saving, spending, and earning more money. Please feel free to peruse our site and read any of the articles that catch your interest.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button