The Deputy Governor of the Bank of Japan, Hirohide Yamaguchi has stated that the Bank could implement further stimulus if Japan’s economic and commercial price conditions do not improve. He also rejected criticism of the policies impact on the Yen.
Last week the Bank of Japan adopted a 2% inflation target without a deadline and said that it would wait until 2014 to start open-ended asset purchases. A target that recently elected Prime Minister Shinzo Abe urged the bank to reach as quickly as possible, he also called for more action to weaken the Yen. Already the Yen has weakened by more than 12% against the US Dollar.
Yamaguchi also denied speculation that the BOJ was causing other nations to adopt similar monetary easing and weakening measures to create a currency war.
“As for talk of currency wars, I want to make it clear that the BOJ doesn’t conduct monetary policy, and didn’t bolster stimulus this time, in an attempt to influence the yen,” Yamaguchi said, “It’s not our way of thinking to aim directly to influence the level of currency,” Yamaguchi said. “Monetary easing naturally makes an indirect impact on foreign exchange rates.”
The latest consumer prices data showed that Japan’s prices fell by 02% in December, its 17th drop in the last 24 months, suggesting that the economy is still far from sustaining price gains.
These exchange rates were correct as of 14:30 pm
The Japanese Yen to Pound Sterling exchange rate is currently trading at 0.00694
The Japanese Yen to US Dollar exchange rate is currently trading at 0.01099
The Japanese Yen to Euro exchange rate is currently trading at 0.00810
The Japanese Yen to Australian Dollar exchange rate is currently trading at 0.01054
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