Shirakawa Reiterates His Commitment to Monetary Easing Program

By TraderVox.com

​Tradervox (Dublin) – Some concerned about the Bank of Japan’s stand on monetary easing policy had been raised earlier this week after some analysts pointed out that the BOJ is confusing traders on its stance. Today, Masaaki Shirakawa, the BOJ Governor set the record straight by reaffirming his commitment to the monetary easing policy.

He said in a speech in New York that he remains committed to continuing monetary easing. He also indicated that the Japanese economy had stagnated despite reports released today showing that the exports grew the fastest in a year.

In his speech, Shirakawa said that the BOJ will pursue powerful monetary easing through different measures that will include retaining interest rate at practically zero and buying financial assets until its YoY CPI inflation of 1 percent is presumed achievable. The Japanese currency had strengthened against the US dollar to post World War II record prompted the BOJ to embark on an asset purchases program to save exporters from tremendous losses they were getting.

In another report, Japan had experienced a smaller than expected trade deficit which has boosted sentiments that Japanese economy is on a recovery path. Further, the outbound shipments rose by 5.9 percent in March from a year earlier which has exceeded the market’s estimate of a 0.2 percent increase.

The statement by the BOJ Governor came after a former BOJ member indicated that the recent actions by the BOJ has been against its stance of monetary easing saying that the Bank of Japan was confusing traders. Following comments by the BOJ governor Mizuho Securities Co., SMBC Nikko Securities Inc., and Morgan Stanley MUFG Securities Co. have predicted that BOJ will expand asset purchases at its April 27 meeting. The central bank is under pressure from lawmakers to be more aggressive in countering the decade-long deflation.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox