BOJ Yamaguchi: policy not pinned to specific fx rate

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TOYAMA, Japan, July 21 (BestGrowthStock) – Bank of Japan Deputy
Governor Hirohide Yamaguchi said on Wednesday the central bank
has not guided monetary policy with a specific currency rate
level in mind, and will not do so.

“I do understand that currency markets have recently been
moving towards yen strengthening, but when determining how such
moves would affect Japan’s economy we need to monitor not just
the impact on underlying growth but the outlook for the economy,”
Yamaguchi told a news conference after meeting business leaders
in Toyama, central Japan.

Asked about market speculation that Japan may intervene in
the currency market on sharp yen rises, Yamaguchi said it was
inappropriate for him to comment because the government had
jurisdiction over currency policy.

Yamaguchi, a career central banker whose views are thought to
be close to those of Governor Masaaki Shirakawa, has mostly toed
the BOJ’s official line on monetary policy.

He is regarded as mainly in charge of communicating the BOJ’s
view to the government and ruling party lawmakers.

The BOJ has kept interest rates at 0.1 percent since late
2008 and eased monetary policy further by putting in place a new
cheap loan programme in December 2009 amid pressure from a
government worried about the yen’s surge to a 14-year high
against the dollar. It expanded the scheme in March.
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(Reporting by Leika Kihara)

BOJ Yamaguchi: policy not pinned to specific fx rate