BOJ's Amamiya: Appropriate to guide monetary policy with a bias toward further easing
|Bank of Japan (BOJ) considers it appropriate to guide the monetary policy with a bias toward further easing and will not hesitate to expand the existing stimulus if the economy loses the momentum necessary to hit the central bank's 2% inflation target, BOJ's Deputy Governor Amamiya said on Thursday.
So far, Amamiya's comments have failed to move the JPY pairs. The USD/JPY is currently trading largely unchanged on the day at 108.54.
Key quotes (Source: Reuters)
BOJ must weigh benefits, costs of any policy step it takes.
BOJ is aware prolonged low interest rates could destabilise financial system.
Most important issue for BOJ that warrants attention is downside risks to Japan's economy, prices.
Japan exports, output likely to remain weak, while domestic demand may slow temporarily due to impact from global slowdown, sales tax hike.
Japan's capex likely to sustain uptrend but could slow for time being as pickup in global growth is delayed.
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