MNI BRIEF: BOJ To Vigilantly Monitor Markets - Dep Gov Himino

MNI (TOKYO) - Bank of Japan Deputy Governor Ryozo Himino said on Wednesday that the BOJ would adjust would adjust monetary policy if it has growing confidence "that its outlook for economic activity and prices will be realised," noting the Bank must closely monitor developments in unstable financial markets. 

“The BOJ also intends to carefully examine the impact these market developments at home and abroad have on the outlook for economic activity and prices, the risks surrounding the outlook, and the degree of confidence in the outlook,” Himino told business leaders in Kofu City.

He added the estimated neutral rate would not automatically reveal the right policy path for Japan, "at least at the moment.” “I believe that the Bank should continue its efforts to refine its approaches to estimate the neutral rate for Japan and use the results as a useful point of reference," he added. "I suppose, however, the Bank has no other choice than to chart a way forward examining how the economy and prices respond as it conducts monetary policy." 

Himino added the Bank will conduct monetary policy as appropriate to achieve the 2% price-stability target in a sustainable and stable manner while closely communicating with market participants and other stakeholders.

MNI reported earlier the BOJ's long-term policy normalisation plans remain intact, despite a likely pause at the Sept 19-20 meeting and Governor Kazuo Ueda's comments over potential rate hikes this year. (See MNI POLICY: BOJ Set For Sept Pause, Rate Hike Path Intact)