On Wednesday, Bank of Japan (BOJ) Deputy Governor Shinichi Uchida emphasized that the central bank will refrain from increasing interest rates during periods of financial market instability.
He noted that the recent appreciation of the yen could impact the BOJ’s policy decisions as it dampens upward pressure on import prices and overall inflation.
Uchida also highlighted that stock market fluctuations would play a role in the BOJ’s decision-making process by influencing corporate activities and consumer spending.
Speaking at a business gathering in Hakodate, Uchida stated that in light of significant volatility in both domestic and international financial markets, it is crucial to maintain the current monetary easing measures in place.
He further mentioned that any alterations to the BOJ’s interest rate trajectory would depend on the impact of market instability on economic conditions, price outlook, risk assessment, and the likelihood of sustainably achieving the 2% inflation target.
