“The stability of the financial market is the most important factor to take into account at the time of exit“, the executive director of the Bank of Japan (BOJ), Shinichi Uchida, mentioned early on Thursday.
The senior BoJ official has also mentioned that a rate hike before the balance sheet adjustment is possible in an exit.
Earlier in the day, BoJ Governor Haruhiko Kuroda also defended the Japanese central bank’s easy money policy by stating: “(It is) important to continue monetary easing to support the economy“.
In addition, Lieutenant Governor Hiroshi Nakaso has mentioned that central banks should remove emergency support measures after financial crises are over, to avoid creating moral hazard in the market. “Investors have come to assume that central banks will always come to the rescue when financial markets destabilize due to the massive monetary support deployed during the COVID-19 crisis.BoJ’s Nakaso told a seminar organized by the University of Tokyo and the International Monetary Fund.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
