Japanese Prime Minister Fumio Kishida said careful explanation and communication with markets would be part of consideration on monetary policy, when asked about possible future changes in the Bank of Japan’s ultra-loose policy.
(Bloomberg) — Japanese Prime Minister Fumio Kishida said careful explanation and communication with markets would be part of consideration on monetary policy, when asked about possible future changes in the Bank of Japan’s ultra-loose policy.
His comments in a live interview with public broadcaster NHK came after central bank governor Haruhiko Kuroda last month shocked markets by saying he would allow Japan’s 10-year bond yields to rise to about 0.5%, double the previous upper limit of 0.25%.
“We need a firm grasp on the outlook,” Kishida said in response to a question about future changes in policy. “We will consider the situation, including careful explanation and communication with markets.”
Kishida said it was important to pick the most appropriate person to replace Kuroda when his term ends in April and that he would continue to discuss relations between the government and central bank with the new governor.
He said the basic aim remained to achieve economic growth that would bring about structural rises in wages and stable prices. Last week data showed that inflation-adjusted pay had fallen by its biggest margin since 2014.
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Asked about the timing of the next general election, Kishida said he would do what needs to be done and go to the people at an appropriate time.
–With assistance from Tsuyoshi Inajima and Ichiro Suzuki.
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