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BOJ board member Adachi rejects an intensification of speculation

Bank of Japan board member Seiji Adachi dismissed some speculation in the markets that the bank might follow other global central banks in tightening monetary policy to avoid the yen falling further.

“When the bank reacts to short-term fluctuations with monetary policy [in the foreign exchange market] before it hits its target for underlying inflation, it would have a negative impact on the Japanese economy,” Adachi said in a speech on Thursday.

Tightening monetary policy at this stage could increase debt burdens for businesses and households, which in turn could make them reluctant to spend, Adachi said.

He added that the BOJ will continue its current easing policy as annual inflation, barring volatile factors such as higher energy costs, is still around 1% – half of the bank’s target.

https://www.marketwatch.com/story/boj-board-member-adachi-rejects-tightening-speculation-271654135283?rss=1&siteid=rss BOJ board member Adachi rejects an intensification of speculation

Brian Lowry

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