6 December 2022 | Other

Kuroda rejects the possibility of a policy review by the Bank of Japan

Haruhiko Kuroda, the head of Japan's central bank, drew particular attention to the need to keep interest rates ultra-low. The politician rejected the idea of a possible change in monetary policy, which was recently proposed by one of the board members.

According to the governor, the central bank of Japan is trying to reach the target inflation rate of 2%, which will be accompanied by an increase in wages.

Kuroda added that the process may take longer than expected, so it is too early to discuss any details of monetary policy at this time.

Kuroda said this in parliament, answering questions about the statements of board member Naoki Tamura, who believes that the Bank of Japan should review its current monetary policy and make certain adjustments to the existing economic stimulus program.

The head of the central bank of Japan noted that the discussion of the exit strategy from the ultra-soft policy is possible after reaching the target inflation threshold of 2%. One way or another, the plan will be brought to the attention of the markets in due course.

According to Haruhiko Kuroda, the 3.6% jump in inflation in October was primarily caused by a significant increase in the cost of imports. The governor of the Bank of Japan also believes that inflation will be able to fall to the 2% target in the next fiscal year.

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