The Bank of Japan will hold a meeting to decide monetary policy on the 17th, as central banks in Europe and the United States move to tighten monetary policy one after another in response to inflation and the global financial markets become unstable.
It will be interesting to see how President Kuroda explains the impact of the weak yen and the future of monetary policy.
The Bank of Japan will analyze the current state of the economy and the impact of the depreciation of the yen at the monetary policy decision meeting on the 16th, and then discuss the immediate policy at the meeting on the 17th on the second day.
So far, Governor Kuroda has repeatedly stated that he will continue to carry out large-scale monetary easing in order to support the economy and create a virtuous cycle in which both wages and prices rise, and this policy is expected to be confirmed at the meeting.
However, he is becoming more cautious about the rapid depreciation of the yen, saying that it is negative for the economy and is not desirable.
Central banks in Europe and the United States are expected to tighten monetary policy one after another in order to respond to inflation, and interest rates are expected to rise. There are also concerns that the yen will depreciate further.
On the other hand, the central bank of Switzerland, which continues its negative interest rate policy, announced on the 16th that it will raise interest rates, which has heightened the sense of caution about the economic slowdown, and the stock prices of each country have fallen and the yen has strengthened. The financial market has become unstable, such as moving to.
As difficult steering is required, it will be interesting to see how President Kuroda will explain the impact of the weak yen and the future of monetary policy at a press conference after the meeting.