FACTBOX-Japanese policymakers’ remarks on yen, BOJ

(For more stories on the Japanese economy click [ID:nECONJP])

TOKYO, Aug 27 (BestGrowthStock) – Japan’s government is hastily
compiling a package of steps to support the fragile economy in
the wake of the yen’s surge to 15-year highs and is stepping up
its pressure on the Bank of Japan to do more.

Speculation has mounted about what options Tokyo might adopt
to curb the yen’s rise, such as forex intervention, while
companies are better placed to cope than 15 years ago, when the
yen hit a record peak of 79.75 per dollar (JPY=: ).

Following are recent key quotes by Bank of Japan and
government officials.

FINANCE MINISTER YOSHIHIKO NODA, Aug. 27, to reporters

“We’ve worked closely with the BOJ up until now, and I want
to work even more closely with the BOJ to respond appropriately
in the future.

“The trade minister gave a report today on the impact of the
strong yen. The impact is showing up in many different ways and I
think the situation is severe. In light of that, our basic stance
is to take appropriate action when necessary.”

CHIEF CABINET SECRETARY YOSHITO SENGOKU, Aug. 27, in news
conference

“Cabinet ministers expressed very strong concern over the
current yen rises, as well as the economic weakness in the
United States and Europe.

“We’ve reached an agreement that the government needs to work
as one and come up with measures to deal with the yen’s rise
soon. Many in the cabinet especially said that cooperation with
the BOJ needs to be strengthened.”

DEMOCRATIC PARTY POLICY CHIEF KOICHIRO GEMBA, Aug. 26, to
reporters

“The party’s policy panel wants the BOJ to take a swift,
stepped-up response to the yen’s rise and deflation.

“There has been debate about currency intervention in the
panel.”

DEPUTY FINANCE MINISTER MOTOHISA IKEDA, Aug. 26, to reporters

(Asked about an economic stimulus package the government is
mulling)

“The current yen rise poses a grave problem to the economy
… The biggest issue for Japan is to escape from deflation …
We need monetary policy, deregulation and support for the jobs
market as part of the economic measures.

“I believe the BOJ will make an appropriate decision on
monetary policy based on market and economic trends.

“I expect the BOJ to guide policy appropriately and flexibly
while keeping in close contact with the government. I want it to
make utmost efforts.” [ID:nTKX006952]

NODA, Aug. 25, to reporters

(Asked about currency movements after the yen’s rise to a
15-year high against the dollar above 84 yen)

“They have been one-sided. I will watch currency movements
very carefully with great interest. But when necessary we must
respond appropriately.” [ID:nTKU106216]

SENGOKU, Aug. 24, to reporters

(Asked about the dollar’s brief fall below 85 yen on Tuesday)

“We are closely watching market developments, including
whether they are driven by speculators.”

(On whether Prime Minister Naoto Kan and Bank of Japan
Governor Masaaki Shirakawa will meet in the near future)

“I think whoever’s appropriate will send out an appropriate
message on that issue at the necessary time.”

RULING DEMOCRATIC PARTY SECRETARY-GENERAL YUKIO EDANO, Aug.
23, to reporters

“We cannot be optimistic about the yen’s rise and job market
conditions, and since the cabinet and ruling party have such a
view, both are discussing economic steps to cope with the yen’s
rise.”

SENGOKU, Aug. 23, to reporters

(Asked what Kan and Shirakawa discussed in phone call)

“They exchanged views on the economic and financial situation
including foreign exchange. They agreed it was important for the
government and the BOJ to communicate closely with each other.”

BOJ SOURCE, Aug. 23, to Reuters

(On whether Kan requested monetary easing in talks with
Shirakawa)

“We’re not aware.”

GEMBA, quoted by media as saying on an Aug. 22 television
programme

(On how the BOJ should respond to the yen’s rise)

“Measures are up to the BOJ to decide … But diversifying
the type of assets it buys, or increasing the amount it
purchases, could be an option.”

(Asked if boosting spending in a planned economic stimulus
package from the 1.7 trillion yen ($20.12 billion) now being
floated, and issuing deficit-covering bonds for this purpose,
were an option)

“That’s a possible option.”

NODA, Aug. 20, to reporters

(Asked if finance ministry officials were talking with their
G7 counterparts about currencies)

“I can’t comment on what is being discussed, but we are
communicating with each other … I won’t comment on currency
intervention.”
(Reporting by Leika Kihara and Tetsushi Kajimoto and Rie
Ishiguro; Editing by Michael Watson and Joseph Radford)

FACTBOX-Japanese policymakers’ remarks on yen, BOJ