BOJ’s Amamiya: Important to create environment where interest rates can rise

Dhwani Mehta FXStreet

The Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya is back on the wires now, via Reuters, offering some upbeat comments on the economy and the monetary policy outlook.

Additional comments

BOJ striving to create a positive economic cycle.

Important to create an environment where interest rates can rise.

BOJ will weigh the benefits, costs of its policy.

Necessary monetary policies change over time but must be within and in line with its mandate.

BOJ and govt must work closely together when are under severe shock.

BOJ won't tie its policy directly with that of govt.

BOJ ready to mull additional easing steps depending on economic conditions.

BOJ still has means to ease further, such as rate cuts, corporate funding schemes.

Market reaction

USD/JPY keeps its range below 110.00, little changed on the day, finding support from renewed US dollar’s strength.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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