Bank of Japan Governor Kuroda gave a speech at a meeting of Keidanren (Japan Business Federation), acknowledging that the revision of the monetary easing measures decided on the 20th of this month would have a large positive effect on the Japanese economy. No," he said, indicating that the Bank will continue monetary easing with the aim of achieving stable price increases in line with wage increases.
Bank of Japan Governor Haruhiko Kuroda speaks at a meeting of Keidanren's Board of Councilors on the 26th.
Among them, Governor Kuroda said that the revision of the monetary easing measures decided on the 20th of this month was due to the distortion in the trading of government bonds in the bond market. I thought that it would have a negative impact on the financial environment, such as the issuance of corporate bonds, because it would serve as the benchmark for interest rates."
He added, "Although the fluctuation range of long-term interest rates will expand, in continuing with monetary easing, it would be beneficial to maintain the function of government bond interest rates and spread the easing effects more smoothly through corporate finance and other means." He expressed his recognition that the positive impact on the Japanese economy would be large.
Furthermore, Governor Kuroda said, ``This measure is a measure to promote continuous and smooth monetary easing after considering the ripple effect that extends to corporate finance, and is not at all a step toward exit.'' He also indicated his intention to continue monetary easing and aim for stable price increases accompanied by wage increases.