Fumio Kishida, Japan’s prime minister, said the central bank’s monetary policy is targeted at attaining its 2% inflation objective, not at manipulating currency rates, dismissing the notion that the country needs to cease its ultra-low interest rate policy to stop the yen from falling sharply.
The recent surge in domestic inflation, according to Kishida, was primarily due to a worldwide spike in crude oil and raw material costs, rather than the weak yen.
When questioned by an opposition lawmaker about the relationship between the yen’s drops and the central bank’s continued ultra-loose policy, Kishida said, “The Bank of Japan (BOJ) is conducting monetary policy to achieve its 2 percent inflation target, not to manipulate currency rates.”
Fumio Kishida, Japan’s prime minister, said the central bank’s monetary policy is targeted at attaining its 2% inflation objective, not at manipulating currency rates, dismissing claims that the country needs to cease its ultra-low interest rate policy to stop the yen from falling sharply.
The recent surge in domestic inflation, according to Kishida, is primarily due to a worldwide spike in crude oil and raw material costs, rather than the weak yen.
When asked about the relationship between the yen’s drops and the central bank’s continued ultra-loose policy, Kishida told lawmakers, “The Bank of Japan (BOJ) is conducting monetary policy to attain its 2 percent inflation target, not to manipulate currency rates.”
“Some politicians have accused the Bank of Japan’s ultra-easy monetary policy of hastening yen depreciation and causing pain to individuals and businesses by rising living costs. The BOJ has pledged to keep short-term rates at -0.1 percent and long-term borrowing costs at 0% as part of a policy known as yield curve management, which aims to boost inflation to its target of 2