MNI BRIEF: PM Kishida: BOJ Needs To Maintain Easy Policy

Prime Minister Fumio Kishida said on Tuesday that the Bank of Japan needs to maintain the current easy policy but the methods of management is up to the central bank.

“Monetary policy affects foreign exchange rates and also affects smaller firms’ funding and housing loans and the overall economy. (The BOJ) should manage monetary policy in comprehensive way,” Kishida said at debate between party leaders ahead of upper house elections on July 10.

He added that senior officials at the BOJ, the Ministry of Finance and the Financial Services Agency, have all voiced concern over the rapid yen fall against the dollar, and they agreed to take appropriate policy, while carefully monitoring future developments.

When asked about whether he will seek that the new BOJ governor who takes office in April to keep easy policy, Kishida did not answer the question, (See: MNI STATE OF PLAY: BOJ's Kuroda Makes It Clear On Yen, Yields).