Bank of Japan Governor Haruhiko Kuroda said on the 6th that the large-scale quantitative and qualitative monetary easing (QQE) that has been implemented over the past decade, “I don’t think there is any other good way to do it as a monetary policy.” showed recognition. Reply at the House of Representatives Budget Committee.
In April 2013, immediately after taking office, Governor Kuroda announced that he would achieve the price stability target of 2% in about two years and introduced QQE, but he has not been able to achieve a sustainable and stable 2% for 10 years. pointed out that it was “very disappointing”. Although it will take time, he said it would be possible with continued monetary easing.
At its December meeting, the Bank of Japan decided to revise its monetary easing policy by expanding the permissible fluctuation range of long-term interest rates (10-year government bond yields) from the previous 0.25% to 0.5%. At the January 18th meeting, the BOJ maintained its monetary policy, but with rising prices and the expiration of Governor Kuroda’s term in office in April, speculation about further policy revisions is deep-rooted in the market.
As for the reason why the 2% target has not been achieved, the governor cited the persistence of a deflationary mindset fostered by the prolonged deflation. It is necessary to stimulate the economy through monetary easing and create a situation in which prices and wages tend to rise by tightening the labor market. It’s not something I’m doing with .
The recent year-on-year rate of increase in consumer prices (core CPI, excluding fresh food) has increased to about 4%, well above the Bank of Japan’s target, but most of the increase in import prices has been passed on to consumer prices. What was done and explained. Inflation is expected to slow down through the middle of this year, and the average inflation rate for fiscal 2023 is expected to fall below 2%, he said.
other remarks
- Introduction of quantitative and qualitative monetary easing, not due to external requests
- Strive for appropriate monetary policy management, taking into account the side effects of monetary easing
Kuroda’s term of office expires on April 8. The Nihon Keizai Shimbun reported on the 6th, citing information from multiple government and ruling party officials, that the government had approached Masayoshi Amamiya, vice president, to succeed Kuroda. Amamiya was seen as the frontrunner to become the next governor of the Bank of Japan in a Bloomberg survey of economists. In response to the news, the market reacted with a weaker yen and higher stock prices due to the view that there would be no major revisions to monetary policy.
The next governor of the BOJ adjusts with the idea that the government and ruling parties will sound out to the deputy governor Amamiya-Report
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(Updated to add remark details)
