ID :
197664
Wed, 07/27/2011 - 15:49
Auther :
Shortlink :
https://oananews.org//node/197664
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BOJ policymaker rejects need for immediate additional easing+
TSU, Japan, July 27 Kyodo -
The Bank of Japan is not facing any immediate need for additional monetary easing, one of its policymakers said Wednesday, while warning of the high possibility of the yen's surge in the currency market, adversely affecting the country's economic recovery from the March earthquake and tsunami.
The central bank has kept Japan's monetary conditions ''extremely accommodative'' to boost the economy and would have to ''proactively take necessary measures without rejecting any option,'' Hidetoshi Kamezaki, a BOJ Policy Board member, said at a press conference. But he also said, ''If asked whether we need to make a move right now, then (I say) I don't think so.''
As the yen has risen to levels unseen over the last four months against the U.S. dollar, Kamezaki said he doubts this appropriately reflects the fundamentals of the Japanese economy, which has been struggling under the impact of the March 11 disaster. He indicated the yen should be much weaker and help support economic recovery by boosting exports.
The recent strength of the yen comes as investors seek a safe haven in the Japanese currency amid tensions over the global economy, heightened by the sovereign debt problems in the United States and some European countries, Kamezaki said.
''Foreign exchange rates should reflect economic fundamentals,'' he said. As for possible intervention by the government to weaken the yen, the policymaker suggested it would be effective to some extent if conducted when rates move with great volatility.
Earlier in the day, Kamezaki told business leaders in Tsu, Mie Prefecture, that there is growing uncertainty over the world economy and this casts a shadow on the outlook for the Japanese economy.
''As for overseas economies, uncertainty has been increasing to some extent, and short-term risks to the Japanese economy are also shifting to the demand side from the supply side,'' he said.
Japan's industrial output has been quickly recovering from the sharp falls in the wake of the March 11 disaster as disruptions in the nationwide supply chain of key components have been dealt with, he said, but added that the negative outlook for the global economy could lead to weaker demand for Japanese exports and consequently slow the country's economic recovery.
==Kyodo
2011-07-27 20:49:39
The Bank of Japan is not facing any immediate need for additional monetary easing, one of its policymakers said Wednesday, while warning of the high possibility of the yen's surge in the currency market, adversely affecting the country's economic recovery from the March earthquake and tsunami.
The central bank has kept Japan's monetary conditions ''extremely accommodative'' to boost the economy and would have to ''proactively take necessary measures without rejecting any option,'' Hidetoshi Kamezaki, a BOJ Policy Board member, said at a press conference. But he also said, ''If asked whether we need to make a move right now, then (I say) I don't think so.''
As the yen has risen to levels unseen over the last four months against the U.S. dollar, Kamezaki said he doubts this appropriately reflects the fundamentals of the Japanese economy, which has been struggling under the impact of the March 11 disaster. He indicated the yen should be much weaker and help support economic recovery by boosting exports.
The recent strength of the yen comes as investors seek a safe haven in the Japanese currency amid tensions over the global economy, heightened by the sovereign debt problems in the United States and some European countries, Kamezaki said.
''Foreign exchange rates should reflect economic fundamentals,'' he said. As for possible intervention by the government to weaken the yen, the policymaker suggested it would be effective to some extent if conducted when rates move with great volatility.
Earlier in the day, Kamezaki told business leaders in Tsu, Mie Prefecture, that there is growing uncertainty over the world economy and this casts a shadow on the outlook for the Japanese economy.
''As for overseas economies, uncertainty has been increasing to some extent, and short-term risks to the Japanese economy are also shifting to the demand side from the supply side,'' he said.
Japan's industrial output has been quickly recovering from the sharp falls in the wake of the March 11 disaster as disruptions in the nationwide supply chain of key components have been dealt with, he said, but added that the negative outlook for the global economy could lead to weaker demand for Japanese exports and consequently slow the country's economic recovery.
==Kyodo
2011-07-27 20:49:39
