Economic news
BOJ stance is to let market forces set long-term rates, governor says
2024.06.04 03:43
By Leika Kihara
TOKYO (Reuters) – Bank of Japan Governor Kazuo Ueda said on Tuesday the central bank’s basic stance is to allow market forces to set long-term interest rates.
But he said the central bank will conduct “nimble” market operations if long-term interest rates spike, signaling the BOJ’s readiness to ramp up bond buying when necessary.
On monetary policy, Ueda said the central bank will adjust the degree of monetary support if underlying inflation accelerates in line with its forecast.
“If our economic and price outlook, or risks, change, that will also be reason to change the level of interest rates,” Ueda told parliament.
