BOJ Governor Strikes Cautious Note Over Global Economic Outlook

Cautious Outlook Amidst Uncertainties

Bank of Japan (BOJ) Governor Haruhiko Kuroda expressed caution regarding the global economic outlook, citing ongoing uncertainties and downside risks.

Kuroda highlighted concerns about the impact of the COVID-19 pandemic, the ongoing war in Ukraine, and rising inflation on global economic growth.

Inflation Concerns

Kuroda acknowledged that Japan's inflation rate has been rising due to higher energy and commodity prices, but emphasized that underlying inflation remains subdued.

He stated that the BOJ will continue to monitor the inflation situation and adjust its monetary policy as necessary to achieve its 2% inflation target.

External Risks

Kuroda expressed concerns about external risks to Japan's economy, including the slowdown in global growth, the impact of the war in Ukraine, and rising geopolitical tensions.

He emphasized the importance of addressing these risks and fostering a stable economic environment.

Policy Considerations

Kuroda reiterated the BOJ's commitment to maintaining its accommodative monetary policy, including its negative interest rate policy.

He stated that the BOJ will carefully consider the impact of its policies on Japan's financial system and long-term economic growth.

Conclusion

The BOJ's cautious outlook reflects the uncertainties and risks facing the global economy.

The central bank will continue to monitor the situation and adjust its monetary policy as necessary to support economic growth and price stability.