(Nikkei: March 3, 2016 – p. 4)
The Financial Services Agency (FSA), the Ministry of Finance (MOF), and the Bank of Japan (BOJ) held a meeting on March 2 to discuss international financial markets. Financial markets are now seeing movements to avoid the risks caused by low crude oil prices. In addition, China and other emerging economies are not improving. The three organizations intend to carefully observe moves in the global economy through close cooperation among their officials in charge of financial policy.
FSA Commissioner Nobuchika Mori, Vice Minister for International Affairs Masatsugu Asakawa, and BOJ Executive Director Masayoshi Amamiya met yesterday to exchange views on international financial markets.
Since the introduction of the BOJ’s negative interest rate policy, stock prices and exchange rates have been fluctuating violently in Japan’s financial market. There is strong concern about a persistently strong yen, which could worsen the performance of Japanese companies. In light of this instability in the financial market, the officials will continue to meet once a month.
On March 1, Prime Minister Shinzo Abe announced a plan to set up a “council to analyze the international financial and economic situation,” which would listen to the views of experts. He has indicated that the global economy will be high on the agenda at the G7 (Ise-Shima) Summit in May.
Cooperation among the FSA, MOF, and BOJ officials is apparently aimed at preparing for the G7 Summit, which Japan will host, and ensuring continued support for Abenomics. Some in the government are calling for new economic stimulus measures. All eyes will now be on whether the government can come up with flexible measures while carefully watching market movements.