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No intention of scaling back monetary easing: BOJ deputy chief

  • February 3, 2021
  • , Jiji Press , 5:40 p.m.
  • English Press

Tokyo, Feb. 3 (Jiji Press)–The Bank of Japan has no intention of scaling back its monetary easing when the central bank conducts an assessment of the current policy by next month, Deputy Governor Masazumi Wakatabe said Wednesday.


The upcoming assessment will focus on “how to be nimble in conducting effective monetary easing while taking care of costs,” Wakatabe said in an online lecture.


Amid the coronavirus pandemic, Wakatabe pointed to downside risks to the economy, but noted, “The economy has not returned to deflation despite a significant decline in economic activity.”


He said the start of vaccinations against the coronavirus in some countries is “encouraging,” although there are uncertainties about the pace of vaccine distribution and the effects of vaccines.


At an online press conference later on Wednesday, Wakatabe suggested that the assessment of the easing policy will be aimed at securing policy flexibility so that the BOJ can swiftly respond to future crises.


The BOJ is “not on a wrong path” in proceeding with the ongoing policy to control short- to long-term interest rates, he said.


Furthermore, Wakatabe said the central bank should consider “more effective policy tools” to achieve its inflation target of 2 pct.

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