{"id":595391,"date":"2023-01-07T19:45:00","date_gmt":"2023-01-08T01:45:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/01\/07\/japan-kishida-vows-to-debate-govt-boj-roles-with-new-central-bank-head\/"},"modified":"2023-01-07T19:45:00","modified_gmt":"2023-01-08T01:45:00","slug":"japan-kishida-vows-to-debate-govt-boj-roles-with-new-central-bank-head","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/01\/07\/japan-kishida-vows-to-debate-govt-boj-roles-with-new-central-bank-head\/","title":{"rendered":"Japan Kishida vows to debate govt, BOJ roles with new central bank head"},"content":{"rendered":"
\n

\"Japan
\n\u00a9 Reuters. Japanese Prime Minister Fumio Kishida speaks during a news conference at the prime minister’s official residence in Tokyo, Japan October 14, 2021. Eugene Hoshiko\/Pool via REUTERS<\/span>
\n<\/i>\n<\/p>\n

By Leika Kihara<\/p>\n

TOKYO (Reuters) -Japanese Prime Minister Fumio Kishida said on Sunday his government and the central bank must discuss their relationship in guiding economic policy after he names a new Bank of Japan (BOJ) governor in April.<\/p>\n

The remark heightens the chance the government may revise its a decade-long blueprint with the central bank that focuses on beating deflation, a move that would lay the groundwork for an exit from the BOJ’s ultra-loose monetary policy.<\/p>\n

Asked what kind of person he would choose as BOJ governor, Kishida said it will be someone “best suited for the job” when Haruhiko Kuroda’s term ends in April.<\/p>\n

“The government and the BOJ must work closely together, but also each play its own role” in achieving price stability and higher wage growth, Kishida said in a programme on public broadcaster NHK.<\/p>\n

“Under the new BOJ governor, we must discuss the relationship between the government and the BOJ,” said Kishida, who has authority to choose the central bank head.<\/p>\n

The BOJ stunned markets last month by widening the band around its 10-year bond yield target to address market distortions caused by its policy, a move investors saw as a prelude to a future rate hike.<\/p>\n

Markets are rife with speculation the BOJ could move further to phase out Kuroda’s massive stimulus by tweaking its yield control policy under a new central bank governor.<\/p>\n

“In guiding monetary policy, policymakers must have a view on the outlook for the economy. There needs to be careful communication and dialogue with markets,” Kishida said, when asked whether the BOJ needs to tweak it ultra-loose policy.<\/p>\n

Surging raw-material import costs have pushed inflation well above the BOJ’s 2% target in recent months, achieving what Kuroda’s decade-long stimulus efforts had failed to accomplish.<\/p>\n

Kuroda has dismissed the chance of a near-term interest rate hike on the view the BOJ must keep supporting the economy until the current cost-push inflation turns into a demand-driven one accompanied by higher wages. <\/p>\n

But his remarks have failed to tame market expectations of a near-term tweak to the BOJ’s ultra-loose policy, which is blamed by critics for crushing bank margins, distorting bond market pricing and fuelling a yen plunge that pushed up import costs.<\/p>\n

“The BOJ must revise its extraordinary monetary easing,” which has caused pain on households and companies by triggering a sharp yen fall, Kenta Izumi, leader of main opposition the Constitutional Democratic Party of Japan, said on Sunday.<\/p>\n

“While communicating closely with markets, the BOJ needs to make its policy more flexible with an eye on an eventual normalisation of monetary policy,” he told the NHK programme.<\/p>\n

Core consumer prices in November rose 3.7% from a year earlier, and analysts expect inflation to remain above the 2% target in coming months, as companies continue to pass on higher costs to households. Wage rises have lagged well behind inflation, with nominal pay up just 0.5% in November from a year earlier.<\/p>\n

The BOJ will likely upgrade its inflation forecasts at a rate review this month, sources have told Reuters, underscoring its conviction that robust domestic demand will keep inflation sustainably around its 2% target in coming years.<\/p>\n<\/div>\n

Read More<\/a>
\n Lyndia Serna<\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. Japanese Prime Minister Fumio Kishida speaks during a news conference at the prime minister’s official residence in Tokyo, Japan October 14, 2021. Eugene Hoshiko\/Pool via REUTERS By Leika Kihara TOKYO (Reuters) -Japanese Prime Minister Fumio Kishida said on Sunday his government and the central bank must discuss their relationship in guiding economic policy […]<\/p>\n","protected":false},"author":1,"featured_media":595392,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[534,22487,93927],"tags":[],"class_list":{"0":"post-595391","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-financial","8":"category-japan","9":"category-kishida"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/595391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=595391"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/595391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/595392"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=595391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=595391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=595391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}