BOJ Shirakawa comments from news conference
Bank of Japan Governor Masaaki Shirakawa said on Friday the central bank’s new definition of long-term price stability does not mean monetary policy will be guided by short-term price moves alone. Earlier, the central bank left rates at 0.1% as expected, but indicated it would not tolerate deflation. This may bring about further monetary easing.
Here are some quotes from Shirakawa;
-In guiding policy, it is important to examine our economic scenarios by monitoring prices
-Looking back at the period before the financial crisis, prices had been stable in each country since the middle of the 2000s and low inflation had continued amid disinflation
-Prices are important but you may overlook imbalances in the overall economy if you are looking only at prices … It became clearer that we need to pay heed to this as a result of the financial crisis.
-Price stability is of course important but it is inappropriate to guide short-term monetary policy just by looking at underlying price moves
-The clarification of our understanding on price stability that we announced today is different from when the BOJ committed itself to maintaining quantitative easing until prices turned positive
-There is no pre-commitment to our future monetary policy decisions
Loading ...
No Responses to “BOJ Shirakawa comments from news conference”
Add a comment