At a press conference on the 21st, the Bank of Japan's Governor Kuroda said that the possibility of raising interest rates by modifying the current large-scale monetary easing policy is "the impact of raising interest rates is quite large and we have no intention of raising interest rates at all." He reiterated his policy of persistently continuing monetary easing.
In this, Governor Kuroda was asked if such a large-scale monetary easing measure was necessary, but he said, "The impact of raising interest rates at this point is probably greater than that calculated by the model. It's going to be pretty big. I have no intention of raising interest rates. "
On top of that, he said he would not change the current monetary easing mechanism, which limits the upper limit of long-term interest rates to about + 0.25%, and stated that he would continue monetary easing persistently.
Regarding the reason, Governor Kuroda said that the rise in wages has not caught up with the rise in prices. We need to raise wages further due to the winter bonus and next spring fight. "
Regarding the rapid depreciation of the yen in the foreign exchange market these days, "The recent rapid depreciation of the yen increases uncertainty about the future and makes it difficult for companies to formulate business plans. It's negative for the economy and not desirable. "
He pointed out that the difference in monetary policy stance between Japan and Europe and the United States is behind the depreciation of the yen. I think it's true that the market thinks it's influencing. "
However, "It is highly unlikely that the depreciation of the yen will stop just by raising interest rates a little. If we really want to stop the depreciation of the yen only by interest rates, it will cause a significant increase in interest rates and cause great damage to the economy." He acknowledged that it would be unthinkable to modify current monetary easing measures to raise interest rates in order to stop the depreciation of the yen.