Japan’s government calls on BOJ to be alert to market swings

© Stocksak. FILE PHOTO – A security guard walks past the Bank of Japan headquarters in Tokyo on January 23, 2019. REUTERS/Issei Kato

TOKYO (Stocksak), Japan’s government will ask the central bank to be aware of the economic impact of sharp market movements in a scheduled spending plan aimed at cushioning rising living costs. Stocksak obtained a draft document on Monday.

The government warned that “global depression fears were increasing” in the draft document detailing the package. This could affect consumption and capital expenditures.

The document indicated that the Bank of Japan as well as the government must use the right fiscal and monetary policies to mitigate economic risks.

“We hope that the Bank of Japan guides appropriate monetary policy to sustainably stably reach its price target,” the draft document stated.

The government released a June outline of long-term economic policies. It stated that it hoped that the BOJ would sustainably and stably reach its price target, “with an eye to economic, price, and market developments.”

Prime Minister Fumio Kishida is expected to approve this package at a cabinet session on Oct. 28. This will be the same day that the BOJ completes a two day rate review.

The BOJ is expected to keep its monetary policy loose at the policy meeting.

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