The Bank of Japan’s governor, Haruhiko Kuroda, said on the 18th that the recent depreciation of the yen was “a fairly rapid exchange rate fluctuation” and that the impact on the economy would be “a very large depreciation of the yen or a negative effect in the case of a rapid depreciation of the yen. It will grow. ” Answer at the House of Representatives settlement administration monitoring committee.
Kuroda said that the depreciation of the yen as a whole has not changed the evaluation that it is positive, but “it is necessary to look more carefully.” He reiterated that it would be appropriate to continue easing monetary policy with the aim of achieving the 2% target.
| Remarks by President Kuroda |
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“Negatives must also be considered in the sense that fairly rapid exchange rate fluctuations can make it difficult for a company to formulate a business plan.” “In the case of a very large depreciation of the yen or a rapid depreciation of the yen, the minus will be large.” “It should be noted that the impact of the depreciation of the foreign exchange on the economy is uneven depending on the type of industry, the size of the company, and the economic entity. Although the overall positive evaluation has not changed, excessively rapid fluctuations are not possible. We also need to consider the negative effects of increased certainty. “ |
The dollar / yen exchange rate fell from a high of 1 dollar = 126.79 yen for the first time in regarding 20 years, triggered by the remarks of President Kuroda.
The dollar / yen depreciation, the recent depreciation of the yen is quite rapid, and Governor Kuroda-the first half of 126 yen
Finance Minister Shunichi Suzuki with the Bank of Japanjoint statementHe said he had no intention of changing. He also said that monetary policy has the independence of the Bank of Japan.
Remarks by Finance Minister Suzuki
- Refrain from commenting on foreign exchange intervention
- Excessive fluctuations and chaotic movements can be detrimental-exchange
- It is important to communicate closely with the monetary authorities
- Exchange stability is important, rapid fluctuations are not desirable
- Respond to foreign exchange trends with a sense of tension, including the depreciation of the yen
Governor Kuroda
Photographer: Kiyoshi Ota/Bloomberg
(Updated by adding the remarks of Governor of the Bank of Japan Kuroda)