Bank of Japan Deputy Governor Masayoshi Amamiya said on Friday that the BOJ must pay great attention to developments in financial and foreign exchange markets and their impact on economy and prices.
“The BOJ will maintain easy policy in order to achieve the price stability target in a stable and sustainable manner, while steadily supporting the economy,” Amamiya said at the general meeting of the Shinkin Bank Association. (See MNI INSIGHT: BOJ Eyes Autumn Move If Yen Steadies, Prices Rise)
Amamiya also said that Japan’s core inflation rate is expected to stay at around 2% but the year-on-year rise is likely to shrink as the contribution from energy will wane.
He added that the BOJ continues to carefully monitor corporate funding as commodity and energy prices rise.