Intellasia East Asia News – Kuroda says BOJ can achieve smooth exit from loose money policy

Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank can execute a smooth exit from its ultra-loose monetary policy, though doing so “won’t be easy”.

Kuroda repeated his view that the central bank must maintain ultra-easy monetary policy for now, with consumer inflation expected to slow next year and beyond, after speeding up to near its 2 percent target this year because of surging energy costs.

When the right moment comes, the BOJ’s board will plan an exit from its easy policy and lay it out to the public, he said.

“The key would be how to raise interest rates and scale back the BOJ’s expanded balance sheet,” Kuroda told parliament on Thursday.

“The BOJ can combine various means and ensure markets remain stable in executing a smooth exit from easy policy. I must add, however, that it won’t be easy,” he said.

The yen on Thursday briefly strengthened more than half a yen to 126.61 to the dollar. It was last up about 0.4 percent at 126.85.

Kuroda said interest rate hikes by the US Federal Reserve may not necessarily weaken the yen against the dollar further, if they also knock down US share prices.

Prime minister Fumio Kishida told the same parliament session it was hard to say whether the yen’s weakness would be short-lived or become prolonged.

“Sharp yen moves are undesirable. While a weak yen benefits exports and firms with overseas assets, it hurts households and some businesses via higher costs,” Kishida said.


Category: Japan

Print This Post

Source link


General Motors quarterly sales fell 15 percent as parts shortages persisted.

General Motors said on Friday that its new-vehicle sales...

On Their First Date, Plunging Into a Relationship

For their first date, Stephanie Schulter and Halle Anne...

Govt taking every possible step to control load-shedding: PM Shehbaz

Prime Minister Shehbaz Sharif has expressed the resolve to...

TikTok tells Republican senators how it plans to keep American data away from China.

TikTok gave U.S. lawmakers more details in a letter...

Intellasia East Asia News – Yen briefly drops to 137, new 24-year low against dollar

<!-- --> The yen briefly fell to the 137 line against the US dollar on Wednesday in New York, hitting a new 24-year...

Intellasia East Asia News – China’s June factory, services activity expands for first time in four months

<!-- --> China’s factory activity snapped three months of decline in June, as authorities lifted a strict lockdown in Shanghai, buoying growth in...

Intellasia East Asia News – Coronavirus: former leader CY Leung says Beijing understands HK’s need to reopen border, suggests quota of up to 50,000...

<!-- --> Beijing understands Hong Kong’s urgent need to reconnect with mainland China and the city should seek permission for as many as...