Bank of Japan (BOJ) board member Himino stated that it is inappropriate for monetary policy to target exchange rates. He emphasized that the BOJ is guiding monetary policy to achieve a situation where underlying inflation, excluding one-off factors, moves around 2%. Himino also highlighted the necessity of being very vigilant to foreign exchange (FX) fluctuations and their impact on the economy and prices. He noted that the BOJ must consider various aspects in guiding monetary policy and should not automatically respond to FX moves when setting interest rates.
BOJ's Himino: It is inappropriate for monetary policy to target exchange rate https://t.co/PZ1KEf8bOd
BOJ'S HIMINO: WE MUST LOOK AT VARIOUS ASPECTS IN GUIDING MONETARY POLICY & SHOULD NOT AUTOMATICALLY RESPOND TO FX MOVES IN SETTING INTEREST RATES.
BOJ'S HIMINO: WE MUST LOOK AT VARIOUS ASPECTS IN GUIDING MONETARY POLICY, SHOULD NOT AUTOMATICALLY RESPOND TO FX MOVES IN SETTING INTEREST RATES
⚠️ BOJ'S HIMINO: **WE MUST OBVIOUSLY BE VERY VIGILANT TO FX FLUCTUATION AND ITS IMPACT ON ECONOMY, PRICES, IN GUIDING MONETARY POLICY **WE MUST LOOK AT VARIOUS ASPECTS IN GUIDING MONETARY POLICY, SHOULD NOT AUTOMATICALLY RESPOND TO FX MOVES IN SETTING INTEREST RATES
BOJ'S HIMINO: WE MUST OBVIOUSLY BE VERY VIGILANT TO FX FLUCTUATION AND ITS IMPACT ON ECONOMY, PRICES, IN GUIDING MONETARY POLICY
BOJ'S HIMINO: IT'S INAPPROPRIATE FOR MONETARY POLICY TO TARGET FX RATES.
BOJ'S HIMINO: WE ARE GUIDING MONETARY POLICY TO ACHIEVE A SITUATION WHERE UNDERLYING INFLATION, EXCLUDING ONE-OFF FACTORS, MOVE AROUND 2%.
⚠️ BOJ'S HIMINO: WE ARE GUIDING MONETARY POLICY TO ACHIEVE A SITUATION WHERE UNDERLYING INFLATION, EXCLUDING ONE-OFF FACTORS, MOVE AROUND 2%