At a press conference after the cabinet meeting on the 25th, Minister of Finance Suzuki said that the large-scale monetary easing that the Bank of Japan continues is one of the reasons for the depreciation of the yen, and that it is contradictory to suppress it by intervening in the foreign exchange market. In response to the suggestion that this might be the case, the two expressed their recognition that their policy objectives are different and not inconsistent.
The current rapid depreciation of the yen is seen as being brought about by the expansion of the interest rate differential between Japan and the United States as the Bank of Japan continues to implement large-scale monetary easing while the United States continues to tighten monetary policy.
Since September 22, the government and the Bank of Japan have continued to intervene in the market to put a brake on the depreciation of the yen, but at the press conference, it was pointed out that the policy responses of the government and the Bank of Japan may be inconsistent.
In response, Minister Suzuki said, ``The Bank of Japan's monetary policy aims to achieve a stable rise in prices. ”, He showed the recognition that the point was not hit.
Regarding recent exchange rate trends, Minister Suzuki said, "Excessive fluctuations due to speculation cannot be tolerated. Today, we will continue to closely monitor trends in the exchange market and respond appropriately to excessive fluctuations." He showed a willingness to intervene in the market and once again restrained speculative movements.