Reuters logo
BOJ Shirakawa: Harmful to reach price target by relying on inflation expectations
March 7, 2013 / 7:45 AM / 5 years ago

BOJ Shirakawa: Harmful to reach price target by relying on inflation expectations

TOKYO (Reuters) - Bank of Japan Governor Masaaki Shirakawa said on Thursday that relying primarily on boosting inflation expectations to achieve the central bank’s price target could lead to a rise in bond yields and harm the financial system.

Ideally, the best way to achieve inflation is for rising wages to accompany an increase in growth expectations, Shirakawa said at a news conference after the central bank kept monetary policy on hold and upgraded its economic assessment.

Shirakawa and his two deputy governors will resign on March 19, and a new leadership team will guide monetary policy from the next meeting, which is scheduled on April 3-4.

Reporting by Stanley White; Editing by Edmund Klamann

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below