BOJ committed to 'quantitative easing'

TOKYO: Bank of Japan Governor Toshihiko Fukui said yesterday that the central bank remains committed to its policy of “quantitative easing” until deflation ends. 

Fukui also said Japan's economy was in the process of “settling into self-sustained growth”. 

“The Bank of Japan should keep its current policy stance, that is quantitative easing ... until CPI (the consumer price index) comes above 0% year-on-year,” he said in a speech in Tokyo. 

He added that it was a commitment to markets, the general public and the international community. 

Toshihiko Fukui

The BOJ has vowed to maintain quantitative easing until year-on-year changes in CPI stabilise at or above 0%.  

Under the policy, which has pinned short-term interest rates near zero, the central bank floods the money market with far more funds than it needs in an attempt to spur lending and thus encourage economic growth. 

Fukui has said the recent rise in oil prices was filtering through to wholesale and consumer prices, but it would not be enough to immediately reverse five years of deflation because of structural factors such as higher productivity and wage cuts. – Reuters

For Another perspective from The Daily Yomiuri, a partner of Asia News Network, click here

Latest business news from AP-Wire 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Next In Business News

Pharmaniaga appointed sole distributor of Baraka in Malaysia
FBM KLCI likely to trade higher next week
Aramco agrees US$12.4bil deal to sell stake in pipelines
Solar in Malaysia - Challenges, and too much of a good thing?
CPO futures to see volatile trading next week, eyes on MPOB data
Pfizer, BioNTech seek US emergency nod for COVID-19 vaccine in adolescents
Eyes on next generation as Singapore succession is thrown into question
Oil price falls, ends week about 2% lower on supply increase, new lockdowns
BlackRock, Mustier's blank-check firm eye Credit Suisse fund management arm
GLOBAL MARKETS-S&P 500, Dow scale new heights, Treasury yields rise on strong inflation data

Stories You'll Enjoy