print PRINT

ECONOMY

BOJ Governor Kuroda: “We mustn’t turn a blind eye to U.S.-China friction”

  • September 26, 2018
  • , Tokyo Shimbun , p. 7
  • JMH Translation
  • ,

At an informal gathering with local economic groups held in Osaka City on Sept. 25, Bank of Japan Governor Haruhiko Kuroda spoke about protectionist movements, including the trade friction between the U.S. and China. “The impact so far is considered limited,” he said, “but we must be on the lookout for the chance that the impact will be amplified as financial markets are rattled and corporate sentiment deteriorates.”  

 

The trade war between the world’s largest and second largest economies is growing as they impose sanctions and retaliatory tariffs on each other. There are concerns that this will impact Japan. “The Kansai economy depends on the export of semiconductors and electrical equipment, and the trade war is something that we cannot turn a blind eye to,” said Kuroda.

 

Turning to monetary policy, Kuroda emphasized again that Japan “will persist in vigorous monetary easing so that it can achieve the 2% price stability goal as soon as possible.”

 

At the press conference held after the gathering, Kuroda was asked about the fact that the 2% inflation target has not been reached even though five and a half years have passed since large-scale easing was introduced in April 2013. In response, Kuroda countered, “Various factors have come into play, including the drop in oil prices. It took the U.S. ten years and a variety of measures to reach the 2% target.”

 

Prime Minister Shinzo Abe indicated this month the intent to “exit” by reducing monetary easing by 2021, when his new term ends, and some are saying that the significance markets place on the 2% target will change. Kuroda denied such views saying that “we will not abandon the 2% target or change our policy so that the goal is achieved slowly.”

  • Ambassador
  • Ukraine
  • OPINION POLLS
  • COVID-19
  • Trending Japan