Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Unfazed by global exit talk, BOJ policymakers confirm need to keep stimulus

EconomyJul 28, 2021 01:37
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A man wearing a protective mask walks past the headquarters of Bank of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020.REUTERS/Kim Kyung-Hoon

By Leika Kihara

TOKYO (Reuters) - Bank of Japan policymakers appeared undeterred by increasing global debate on withdrawing crisis-mode stimulus, with some calling for the need to avoid a premature tightening of monetary policy, a summary of their debate at the July meeting showed.

Stronger-than-expected inflation has taken centre stage in the policy debate among major central banks including the Federal Reserve, sparking market expectations of a gradual but steady exit from coronavirus pandemic-relief measures.

With Japan's economy still reeling from the pandemic, the BOJ must sustain its ultra-loose policy, one board member was quoted as saying in the summary released on Wednesday.

"Rising commodity prices could push up year-on-year growth in consumer inflation. But there's still some distance to stably achieving our 2% inflation target, which means it's important to avoid a premature monetary tightening," another opinion showed.

"In Japan, it's necessary to patiently continue with monetary easing to meet our price goal in cooperation with the government," a third opinion showed.

The remarks highlight the dominant view among BOJ policymakers that recent global commodity inflation likely won't spur broader rises in consumer inflation that would allow them to debate a near-term withdrawal of stimulus.

At the July 15-16 meeting, the BOJ kept monetary policy steady and extended the deadline for a loan scheme aimed at channeling funds to small firms hit by the pandemic.

The central bank also cut this fiscal year's growth forecast as new emergency curbs to combat the pandemic hurt consumption, reinforcing expectations that it will lag global counterparts in dialing back its massive stimulus.

Unfazed by global exit talk, BOJ policymakers confirm need to keep stimulus
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email