The Deputy Governor of the Bank of Japan, Uchida, reiterated on Monday the central bank’s commitment to maintain a steady course of monetary easing, mirroring earlier sentiments expressed by Governor Ueda. This approach is deemed critical in the face of ongoing economic uncertainty in Japan.
Uchida also highlighted that the Bank of Japan’s 2% inflation target remains elusive, indicating that Japan’s economic situation continues to pose challenges and may necessitate further measures to stimulate growth.
Earlier this summer, in July, the central bank announced an adjustment to its target for the 10-year yield on Japanese Government Bonds (JGB). This decision was intended to enhance the bank’s adaptability in addressing potential financial risks, allowing for a more flexible response to both upward and downward threats.
Furthermore, Uchida hinted at possible intervention in the foreign exchange markets. Stressing the importance of vigilant monitoring of these markets, he suggested that necessary actions could be taken if required. This statement aligns with previous remarks made by Governor Ueda.
In conclusion, it is apparent that the Bank of Japan remains committed to maintaining stability and flexibility in its economic policies while keeping a close eye on both domestic and international financial conditions.
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