TOKYO, Jun 16 (NNN-NHK) – The Japanese government, heaped pressure on the Bank of Japan (BOJ), to help address the yen’s slump, ahead of its two-day policy meeting, starting today.
“We expect (the BOJ) to appropriately take necessary measures, in coordination with the government,” Chief Cabinet Secretary, Hirokazu Matsuno, told a press conference.
The Japanese currency has dropped against the U.S. dollar to its lowest levels in 24 years, fueling speculations that the central bank will be forced to fine-tune its ultra-loose monetary policy.
The BOJ has kept the interest rates extremely low, in contrast with its U.S. counterpart, raising rates in stages.
“Excessive volatility and disorderly movements (in foreign exchange rates) adversely impact the stability of the economy and financial system,” Matsuno said.
“We will closely cooperate with the U.S. and other monetary authorities and respond appropriately when necessary,” he added.
Matsuno declined to comment on the possibility of the government intervening in the currency market, to curb the yen’s decline, which has stricken the country’s economy with surging prices, as a result of higher import costs.– NNN-NHK
