Deputy Governor Shinichi Uchida made this announcement during a meeting with business leaders in Hokkaido province. He emphasized that the BOJ will not increase interest rates amid financial market instability. This decision caused the Yen to depreciate against the USD and took financial markets by surprise.
Uchida reiterated the BOJ’s commitment to monetary easing, stating that keeping policy interest rates unchanged is essential during these times of extreme instability in both domestic and international financial and capital markets.
The BOJ is closely monitoring market developments and their impact on economic activity and prices in Japan. The bank is exercising the utmost vigilance in this regard.
This decision comes after Japan’s first interest rate increase in 17 years, making it crucial for the BOJ and the Japanese government to observe market reactions carefully.
While the BOJ’s move aims to calm market turmoil, analysts believe that it does not rule out the possibility of future rate hikes, potentially even within this year.
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Source: Vietnam Insider