Some in BOJ called for review of strategy to achieve elusive price goal By Reuters

Some in BOJ called for review of strategy to achieve


2/2
© Reuters. Bank of Japan (BOJ) Governor Haruhiko Kuroda bows his head as he leaves a news conference room at the BOJ headquarters in Tokyo

2/2

By Leika Kihara

TOKYO (Reuters) – Some Bank of Japan board members called for a review of the central bank’s policy strategy as the economic shock caused by the coronavirus pandemic pushes inflation further away from its target, a summary of opinions from a September meeting showed.

Those views underline the increasingly tough position the BOJ finds itself in, as inflation had failed to gain momentum even before the coronavirus ravaged Japan’s economy.

A few of the board members said the central bank may need to find a new approach to fire up inflation toward its 2% target, given the pandemic’s sweeping impact on companies and households.

“As economic developments change rapidly, it’s becoming hard to foresee inflation reaching our target. It’s thus necessary to conduct again a comprehensive examination of our strategy for achieving the price goal,” one member said.

“We may need to debate the appropriate monetary policy path from the perspective of how to balance the need to contain the pandemic and keep the economy alive,” according to another opinion shown in the summary.

Some others said the BOJ must act “promptly” and in close cooperation with the government if the pandemic’s scars deepen, according to the summary released on Tuesday.

The BOJ kept policy steady in September and offered a slightly more upbeat view of the economy than in July, suggesting that no immediate expansion of stimulus was needed.

But BOJ Governor Haruhiko Kuroda has said the central bank would work closely with new Prime Minister Yoshihide Suga’s administration to shield the economy from the broadening fallout of the pandemic, including by loosening policy further.

The BOJ releases a summary of opinions voiced by its board member roughly a week after its rate review. It does not disclose the identity of the members who voiced the views.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME