{"id":8269,"date":"2023-04-12T23:49:12","date_gmt":"2023-04-12T23:49:12","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/new-boj-chief-vows-2\/"},"modified":"2023-04-12T23:54:05","modified_gmt":"2023-04-12T23:54:05","slug":"new-boj-chief-vows-2","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/new-boj-chief-vows-2\/","title":{"rendered":"New BOJ chief vows to keep stimulus, shuns premature tightening"},"content":{"rendered":"<p>WASHINGTON (Reuters) -Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank must pay more attention to the risk of failing to meet its 2% inflation target with premature monetary tightening, rather than being behind the curve in combating too-high price growth.<\/p>\n<p>While other countries are experiencing elevated inflation, the situation is &#8220;quite different&#8221; in Japan, Ueda said in Japan&#8217;s G7 chair briefing with Finance Minister Shunichi Suzuki.<\/p>\n<p>&#8220;I don&#8217;t deny it as a possibility,&#8221; Ueda said when asked by a reporter whether Japan could risk being behind the curve in addressing the risk of too-high inflation by keeping monetary policy ultra-loose for a prolonged period.<\/p>\n<p>&#8220;But the BOJ must pay more attention to (the risk of) failing to achieve 2% inflation&#8221; with a premature end to easy policy, rather than that of a delay in raising interest rates, said Ueda, who is in Washington for his debut international meeting since assuming the post on Sunday.<\/p>\n<p>Ueda said he explained to his counterparts at the Group of Seven (G7) meeting that the BOJ will continue its monetary easing until its 2% inflation target was met in a stable and sustainable fashion.<\/p>\n<p>Japan remains an outlier among a global wave of central banks tightening monetary policy to combat soaring prices, as the BOJ focuses on supporting a fragile economy until durable increases in inflation and wages come into sight.<\/p>\n<p>Markets, however, have been simmering with speculation the BOJ will phase out or end its controversial bond yield control policy under Ueda, due to the rising side-effects of prolonged easing such as the hit to bank profits.<\/p>\n<p>Ueda&#8217;s latest remarks, which follow reassurances he made on Monday to maintain yield curve control for now, suggest the BOJ may not overhaul the policy at this month&#8217;s meeting.<\/p>\n<p>At Wednesday&#8217;s briefing, Ueda said G7 policymakers have taken appropriate steps to prevent contagion from recent U.S. and European banking-sector woes, though they needed to be vigilant to &#8220;elevated uncertainties.&#8221;<\/p>\n<p>&#8220;The Basel 3 (bank regulations) have not necessarily been implemented completely,&#8221; he said. &#8220;We need to make sure these regulations are fully implemented.&#8221;<\/p>\n<p> (Reporting by Leika Kihara and David Lawder; Editing by Leslie Adler, Jacqueline Wong and Sam Holmes)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/new-boj-chief-vows-2\/new-bank-of-japan-governor-kazuo-ueda-speaks-at-a\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3B0XG-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3B0XG-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON (Reuters) -Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank must pay more attention to the risk of failing to meet its 2% inflation target with premature monetary tightening, rather than being behind the curve in combating too-high price growth. While other countries are experiencing elevated inflation, the situation is &#8220;quite [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":8270,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[1223],"class_list":["post-8269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3B0XG-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/8269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=8269"}],"version-history":[{"count":4,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/8269\/revisions"}],"predecessor-version":[{"id":8355,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/8269\/revisions\/8355"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/8270"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=8269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=8269"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=8269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}