Japan’s central bank must be vigilant to fallout from unstable markets and global uncertainties, Bank of Japan Governor Kazuo Ueda said on Wednesday, sharpening the focus on the need to bolster economic recovery and for caution on raising rates.
Prime Minister Shigeru Ishiba on Tuesday urged the BOJ to maintain loose monetary policy, as the government strives to end economic stagnation.
In a speech delivered to an annual securities industry meeting, Ueda reiterated the BOJ’s view that Japan’s economy will sustain a moderate recovery and help underlying inflation converge towards the bank’s 2% target in the coming years.
Newly appointed economy minister, Ryosei Akazawa, said on Wednesday the government expected the BOJ to make a “careful assessment” of the economy in judging when to hike rates.