Monetary policy change “time is important”, must be consistent with the goal of overcoming deflation – Economic Recovery Minister Akazawa

On October 4, Economic Recovery Minister Ryomasa Akazawa (pictured) said at a post-Cabinet conference that the timing of the Bank of Japan’s monetary policy changes is important. The photo was taken one day in Tokyo (2024 Reuters / Issei Kato)

TOKYO (Reuters) – Economic Recovery Minister Ryomasa Akazawa said at a post-Cabinet conference on the 4th that he believes the timing of any changes to the Bank of Japan’s monetary policy is important. He also spoke about the need for consistency with the main objective of overcoming deflation.

In response to a question about whether Prime Minister Shigeru Ishiba’s comments regarding the Bank of Japan’s monetary policy had moved the market significantly.

Before becoming prime minister, Mr Ishiba often criticized the Abe administration’s deep discounting, saying it had hampered the body’s metabolism, and just after he won the Liberal Democratic Party’s presidential election on September 27, financial markets supported the Bank of Japan early. interest rate hikes As a result of this outlook, the yen will appreciate and stock prices will fall.

After taking office on the 2nd, he did a complete U-turn and made cautious statements about the Bank of Japan’s early interest rate hikes, which led to a depreciation of the yen and a rise in stock prices.

Regarding the joint statement (Agreement) put together by the government and the Bank of Japan in 2013, there is no change in its definition of targeting 2% price stability.

He also endorsed the Ishiba administration’s economic policy of “Ishibanomics,” in which the public and private sectors work together to drive the economy through wage increases and investment.

Regarding the economic measures that the Prime Minister ordered to be formulated on the 4th, he only said that the treatment of electricity, gas and gasoline subsidies, and whether they should be extended or not, will be determined fully after a careful assessment of the situation.

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