▲ Kazuo Ueda, the new governor of the Bank of Japan (BOJ), holds a press conference on February 27. Tokyo/AFP Yonhap News
Kazuo Ueda, the new governor of the Bank of Japan, expressed his position that it is appropriate to continue the existing monetary policy, large-scale monetary easing. However, it acknowledged that the 20-year monetary easing policy has side effects, leaving the possibility of a change in policy stance in the future.
According to Kyodo News and local public broadcaster NHK on the 10th, President Ueda said of the negative interest rate policy, “It has side effects and has a large impact on the profits of financial institutions.” “he said.
Regarding the joint statement announced by the Japanese government and the Bank of Japan 10 years ago with the goal of raising inflation by 2%, he said, “There is no need to revise it. I think there is room for discussion with the government at a time when the economic situation is changing significantly.”
President Ueda said, “Since strong financial easing has been going on for more than 20 years, it would be good to have a comprehensive evaluation and check and verification of how to proceed,” and emphasized, “I would like to discuss with the policy committee.”
In particular, given the high level of uncertainty in the Japanese economy, it is an aspiration to focus on stabilizing prices and the financial system.
“Achieving price stability has been a long-standing task in the 25 years since the Bank of Japan Act came into force in 1998, but it is not easy to realize it at an early stage,” said Governor Ueda. I want to contribute with all my might,” he said.
Regarding the growing anxiety about finance around the world, he said, “I think Japanese financial institutions have sufficient liquidity.” “I foresaw.
He added, “However, I do not think the market’s anxiety has completely disappeared, so I will definitely pay attention to the future situation.”