HIGHLIGHTS 2-BOJ Shirakawa: Fed not behind meeting date change

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TOKYO, Oct 28 (BestGrowthStock) – Bank of Japan Governor Masaaki
Shirakawa said on Thursday the timing of the Federal Reserve’s
policy meeting was not behind the BOJ’s decision to bring
forward its own meeting to Nov. 4-5 from later in the month.

Shirakawa also told a news conference that expanding the
bank’s 5 trillion yen ($61 billion) asset-buying plan was a
strong policy option if there were big changes in its economic
and price outlook.

Following are key quotes from his news conference:

MONETARY POLICY

“In order to start buying ETFs and REITs early, we decided
to change the date of the next policy meeting to Nov. 4-5 from
Nov. 15-16 so that we can debate and decide on the basic
guidelines.

“Of course we will hold debate as usual on monetary policy.”

Asked if the Fed’s policy meeting was behind the decision:

“It would not be appropriate for me to comment on another
country’s monetary policy. At the policy meetings we examine the
future economic and price outlook based on various data and
developments that have come to light since the last meeting.

“We do this every time, regardless of the FOMC, and then
decide on the most appropriate policy steps. This thinking
itself has not been changed.

“We did not have in mind such schedules …

“The change was solely to begin buying exchange traded funds
and J-REITs as soon as possible.”

EMERGING ECONOMIES

“Large-scale monetary easing by advanced nations and
expectations that such easing will be prolonged may accelerate
money inflows to emerging economies. Depending on what policy
action emerging nations take, this poses risks of overheating
for emerging nations …

“Capital controls in general are undesirable. But many
emerging countries do not yet have sufficient regulatory
supervision … Capital controls to some extent can be allowed
for some emerging countries.”

ASSET BUYING

“Compared to commercial paper and corporate bond purchases
done previously, we lowered by one notch the ratings of debt
eligible for BOJ purchases, meaning we will buy more risk assets

“Given there is more risk premium on lower-rated debt, the
BOJ’s purchases would have the intended effect of lowering risk
premiums …

“Because the markets for ETFs and J-REITs are not big, the
BOJ’s purchases will not be so substantial. We expect our buying
will not only reduce risk premiums but also help spur
investments in those assets and broaden the investor base.”
(Reporting by Leika Kihara, Tetsushi Kajimoto and Rie Ishiguro;
Editing by Michael Watson)

HIGHLIGHTS 2-BOJ Shirakawa: Fed not behind meeting date change