2023-09-22 12:11:46
At its monetary policy meeting on the 22nd, the Bank of Japan decided to maintain large-scale monetary easing measures. Governor Kazuo Ueda raised the ceiling on long-term interest rates at a meeting in July, but has emphasized his intention to continue the easing measures promoted by former Governor Haruhiko Kuroda. However, according to records disclosed by the Bank of Japan in response to a freedom of information request from this newspaper, in June of this year, the Bank of Japan received 112 criticisms of its monetary policy, indicating that the depreciation of the yen and high prices due to continued monetary easing have affected people’s lives. The oppressive current situation emerges. (Koichiro Oshima)
◆After requesting information disclosure…criticism exceeded 100 for the first time in the past year
This is the first time in the year since last June that the number of voices criticizing the Bank of Japan’s current monetary policy (voices calling for a review of monetary policy, etc.) has exceeded 100. In March, when Mr. Kuroda was serving as president, there were 23 cases, but this rose to 60 in April, when Mr. Ueda took office. There were 68 cases in May as well.
Specifically, among the opinions and requests related to monetary policy from the public, the number of criticisms of monetary policy increased sharply following Mr. Ueda took office. The Bank of Japan attributed the increase to “increased attention following the change of president and vice president in March and April,” as well as “rise in prices and the depreciation of the yen.”
Regarding opinions and requests related to foreign exchange, in June, when the yen depreciated once more to the 140 yen level to the dollar, there were 75 requests for “response to the weak yen,” and the yen rose to the 150 yen level. This was a higher number than last October (60 cases). Looking at the specific opinions and requests, some said, “We are really in trouble because raw material prices have gone up due to the weak yen.”
There were also voices calling for policy revisions, such as, “We cannot survive just by continuing monetary easing… due to high prices.” Another appealed, referring to the June decision meeting in which the Bank of Japan decided to maintain easing, saying, “If the result is to maintain the status quo, it does not take into account the lives of the people.We should not continue large-scale easing indefinitely.” On the other hand, there are also voices supporting the policy, saying, “Don’t implement policies that raise interest rates.”
◆Consumer price index exceeds 3% for 12 consecutive months
The Bank of Japan decided to maintain large-scale monetary easing at its monetary policy meeting on the 22nd. The consumer price index for August (excluding fresh food) announced on the same day increased by 3.1% from the previous year. The inflation rate has exceeded 3% for 12 consecutive months, and has exceeded the 2% inflation target set by the Bank of Japan for 17 consecutive months, but Governor Kazuo Ueda said at a press conference, “We have not yet reached a situation where it is foreseeable that the inflation target will be achieved.”We will persistently continue easing.” He emphasized the idea of continuing mitigation.
The Bank of Japan just revised the upper limit on long-term interest rates from 0.5% to 1% at a decision meeting in July, but the difference in interest rates between Japan and the U.S. continues to be large, and the yen continues to depreciate in the foreign exchange market. Immediately following the July meeting, the yen exchange rate was at 139 yen to the dollar, but on the 22nd, the yen depreciated to 148 yen.
For this reason, market participants are increasingly interested in the next revision measures, such as lifting the negative interest rate policy and abolishing the long-term interest rate policy, but Mr. Ueda said, “It is impossible to make a decision on the timing of policy revisions or concrete measures. I can’t do that.” He called wage increases “one of the most important factors” when deciding on policy changes. However, he did not rule out the possibility of lifting negative interest rates by the end of this year without waiting for next year’s spring labor union, saying, “We will make a decision at each decision meeting.”
On the other hand, household finances are in a difficult situation, unable to keep up with rising prices due to factors such as the weak yen. According to the monthly labor statistics survey, real wages have been negative for 16 consecutive months through July. According to the Family Income and Expenditure Survey (households of two or more people), real consumption expenditure, excluding price fluctuations, has been negative for five consecutive months through July.
Mr. Ueda said, “I am acutely aware of the heavy burden placed on household finances.” (Yasuhiro Teramoto)
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