- BoJ's deputy governor Wakatabe: BoJ won’t directly target exchange rates
Market news
16 October 2020
BoJ's deputy governor Wakatabe: BoJ won’t directly target exchange rates
- It may be necessary for the central bank and government to agree on a 2013 joint statement-like arrangement to tackle the (COVID-19) crisis and secure a proper division of labor
- BoJ has numerous tools and programmes it can expand if it see the need to ease monetary policy further
- Currency moves are “extremely important” components for Japan’s economy that the central bank is watching carefully
- If we judge that inflation dynamics would be further eroded or weakened by exchange rate moves, that is time we should think of taking policy action
- Japan's experience shows monetary easing can be maintained for extended period of time
- Benefits of monetary easing far outweigh costs
- Japan's financial sector problems have a lot to do with structural issues like demographics
- BoJ doesn't set maximum employment as explicit target but must pay close attention to job, income conditions
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