Hidetoshi Kamezaki member of the Policy Board of the Bank of Japan said today during briefing with the reporters, that BoJ has no plans to lower main interest rate yet, and it will have to look at whole picture of the coming economic statistics before carrying out a decision on a rate’s change.
The Bank of Japan kept the interest rate at the 0.5% level after the last week meeting on December 20, but it also lowered the economic growth prognosis for the first time since 2004. This fact gave some analysts a reason to think that during the next BoJ’s meeting the interest rate will be cut.
The main dangers for Japanese economy lie in the lack of liquidity in the global financial system, slowdown in U.S. economy growth and the appreciation of yen. BoJ Governor Toshihiko Fukui during one of the recent interviews said that the risks to Japanese economy are increasing as American growth slows and financial markets remain volatile.
Kamezaki insisted that the Bank of Japan carefully looks into the economic releases and considers a full array of indicators before deciding on a rate cut or a rate hike:
We don’t have any preconceptions about future policy. We’ll carefully monitor the economy and prices and remain vigilant.
Many economists agree with the Kamezaki’s opinion and advice not to be so sure about the next BoJ’s decisions, as the interest rate has some chances to rise soon.
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