After attending the Bank for International Settlements (BIS) meeting earlier this week, outgoing Bank of Japan (BoJ) Governor Haruhiko Kuroda has stated that “there was a debate about the collapse of the SVB, mainly around the impact on world markets“.
“Participants in BIS meetings they seemed relieved to see US authorities move quickly to contain the damage from the collapse of the SVB“, has added.
Regarding monetary policy, Kuroda has stated,
The BoJ must maintain the current expansionary monetary policybut there is also likely room to consider measures that address the spillover effects of expansionary policy.
Maintaining the current policy of flexibility, it is possible to sustainably and stably achieve our price target, accompanied by wage growthwhile taking into account the side effects of our policy.
The BoJ will undoubtedly move towards an exit from the expansive policy and has the capacity to do so when the 2% inflation target is reached in a sustainable and stable manner.
When the BoJ decided to go negative in January 2016, I got the feeling that many board members were in favor of the idea, but some thought doing so at that time was premature.
Although it may take some time, it is expected that the functioning of the market will improve with the measures taken within the framework of the existing market tools.
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.
