Bank of Japan Deputy Governor Ryozo Himno is back on the wires, via Reuters, noting that “our imminent task is to closely monitor financial market developments with high sense of urgency.” Additional quotes BoJ’s monetary policy has to take into account numerous factors. Our task is to closely monitor market developments for the time being. Not having in mind specific levels, range for neutral interest rates. Financial conditions are accommodative right now.
What has been the Bank of Japan’s policy? The Bank of Japan has embarked in an ultra-loose monetary policy since 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing , or printing notes to buy assets such as government or corporate bonds to provide liquidity.