Bank of Japan to maintain ultra-loose policy, downplays change expectations

Image via Facebook, Bank of Japan

The Bank of Japan’s Governor, Kazuo Ueda, has stated that the central bank will continue to maintain its ultra-loose monetary policy, as there remains a significant gap to achieve the 2% inflation target sustainably. Ueda’s comments downplay the expectations of a policy change in the near future. He told parliament, “We expect inflation to quite clearly slow below 2% toward the middle of the current fiscal year.”

Ueda added that inflation is likely to rebound after that, but there is high uncertainty regarding the outlook. One positive sign is the expected substantial increase in pay during this year’s annual wage negotiations, which could assist in breaking free from Japan’s deflationary mindset.

Ueda emphasised the bank’s stance, stating, “We will patiently continue monetary easing as there’s still distance to the achievement of sustainable and stable 2% price hikes together with continued rises in wages.” He also confirmed that the Bank of Japan would continue its long-term government bond-buying operations for the time being.

These comments come amidst market speculation that Ueda will soon begin phasing out his predecessor’s stimulus to address the increasing side effects of prolonged easing, such as the distortions caused by massive bond-buying in market pricing, reports Channel News Asia.

In the recent news about the Japanese government, prime minister Fumio Kishida made an announcement about his son Shotaro Kishida, that his son is resigning due to his “inappropriate” behaviour. The prime minister explained that the reason for this dismissal is accountability. Even before the announcement, there was already a scandal, published by a weekly magazine, showing the controversial photos of Shotaro Kishida and other family members pretending to hold a news conference at the official residence.

A few days ago in Japan, Japanese polices detained a suspect who has killed four victims; two citizens and two police. Click this LINK to explore more about this news.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.