HIGHLIGHTS 2-BOJ Gov Shirakawa: always mull policy options

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

TOKYO, Sept 7 (BestGrowthStock) – Bank of Japan Governor Masaaki
Shirakawa said on Tuesday the central bank is always considering
various policy options and will act in a timely and appropriate
way when necessary.

“We will take the most appropriate action by examining the
merits and drawbacks of various steps,” Shirakawa told a news
conference.

Shirakawa also said the central bank will carefully watch the
impact of the strong yen on Japan’s economy, but said it was
wrong to decide if its policy actions were a success or not by
short-term market moves alone.

The BOJ held off on loosening monetary policy earlier on
Tuesday but said it will take timely action when necessary,
setting the stage for possible easing next month if there is
clearer evidence of the impact on the economy of a stronger yen.
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Below are key quotes from Shirakawa’s news conference:

MONETARY POLICY

“When considering policy, we do not have preset views on
specific steps or rule out any policy options.

“We will take the most appropriate action by examining the
merits and drawbacks of various steps.

“The BOJ won’t respond to every move in currency rates and
share prices, but we will guide monetary policy while taking into
account our economic and price outlook over the coming few years.
Other central banks are also attaching the utmost importance to
this.

“The BOJ is watching market moves very carefully, as how the
market moves could affect economic and price trends. It is
important to convey our stance (to markets).

“As a result of such examinations, we will take action in a
timely and appropriate manner if deemed necessary. We have made
efforts on this front and will continue to exert efforts.”

FOREX

“Over the past month, demand for safe currencies has arisen
as global investors fled risk due to heightened uncertainty about
the global economic outlook. Against this backdrop, the Swiss
franc and the yen have been bought …

“In any case, currency rates fluctuate on a daily basis due
to various factors. It is not appropriate to determine if our
policy actions were a success or not by short-term market moves
alone …

“We are fully aware that export-related companies are
considerably affected by the yen’s recent rise.

“But monetary authorities are unable to control currency
rates freely … We are carefully watching how the yen’s rise
impacts the Japanese economy.

“When companies make decisions on capital spending, they may
be induced by the strong yen to hold off.”
(Reporting by Leika Kihara, Rie Ishiguro and Tetsushi Kajimoto;
Editing by Michael Watson)

HIGHLIGHTS 2-BOJ Gov Shirakawa: always mull policy options