Bank of Japan Vice Governor Signals Continued Vigilance on Market Volatility
Kofu, Japan – The Bank of Japan (BOJ) will continue to closelymonitor market developments in the coming months, according to Vice Governor Ryozo Himino. Speaking at a speech in Kofu City, Yamanashi Prefecture on August28, Himino emphasized the importance of preemptive measures to ensure future stability, even if it means sacrificing short-term stability.
Himino’scomments come after the BOJ’s decision to raise interest rates at the end of July, which triggered significant market volatility. The Nikkei average stock price experienced its largest ever decline, while the Tokyo stock market saw substantial fluctuations. The Japaneseyen also rapidly appreciated in value.
Despite these market reactions, Himino expressed confidence that the recent stock market decline would not have a major negative impact on the overall health of the banking industry. He acknowledged that the BOJ had previously beenconcerned about the potential impact of a stock market downturn on banks, but this concern has subsided.
Regarding the future direction of monetary policy, Himino indicated that the BOJ would consider further interest rate hikes if economic growth and inflation trends align with their expectations. He stated that adjusting the previous loose monetary policy is a fundamentalprinciple, provided that economic conditions warrant it.
Regarding the financial market, it is more important to prepare for future stability than to focus on immediate stability, Himino told reporters after the speech. We can only take preemptive measures based on market instability factors.
While Himino did not specify the level towhich the BOJ intends to raise policy interest rates, his comments suggest that the central bank is prepared to take further action to address inflation and ensure the stability of the Japanese economy.
The BOJ’s decision to raise interest rates was a significant shift in policy, marking the first time the central bank has tightenedmonetary policy in over two decades. The move was driven by concerns about rising inflation, which has been fueled by global commodity price increases and a weakening yen.
However, the BOJ’s rate hike has been met with mixed reactions. Some economists argue that the move was necessary to combat inflation, while others believe thatit could stifle economic growth. The BOJ’s continued vigilance on market developments suggests that the central bank is closely monitoring the impact of its policy shift and is prepared to adjust its course as needed.
The BOJ’s actions will be closely watched by investors and policymakers around the world. The Japanese economy is theworld’s third largest, and its monetary policy decisions can have a significant impact on global financial markets.
【source】https://nwapi.nhk.jp/nhkworld/rdnewsweb/v6b/zh/detail/k10014562141000.json
Views: 0