Deputy Governor of the Bank of Japan: Hold Off on Interest Rate Hikes During Market Instability
Publication Time:2024-08-07 10:11:06
In recent public remarks, Deputy Governor Fumihiko Ito emphasized that in the event of significant fluctuations in financial markets, the Bank of Japan would not pursue an interest rate hike but would opt to keep its loose monetary policy position. Ito noted that the current market movements are highly unpredictable, and therefore, require sufficient attention and prudence. He stressed that the authorities must continuously monitor how market dynamics could affect inflation and the broader economy, with interest rate adjustments being contingent upon these factors. Following Ito's comments, the Japanese yen experienced a substantial depreciation of over 2%, while both the Nikkei 225 index and the Topix index surged by more than 3%.
Bank of Japan
Policy interest rate
Market stability
Loose monetary policy