Bank of Japan must respond nimbly to downside risks: Japan Economy Minister Goto

JAPAN’S Economy Minister Shigeyuki Goto said on Monday he hoped the central bank will respond nimbly to any sharp changes in or downside risks to the economy.

In a press conference, Goto said the government “recognises and believes it is meaningful” for the Bank of Japan (BOJ) to conduct a review of its unconventional monetary policy steps to combat deflation in the past 25 years.

“The BOJ has said the review won’t bind its policy conduct when economic conditions change. When various downside risks emerge, and the economy and financial conditions change, the BOJ must respond nimbly,” Goto said after attending a meeting of the government’s top economic council.

The BOJ kept ultra-low interest rates last month but announced a plan to review its past monetary policy moves, laying the groundwork for new Governor Kazuo Ueda to gradually phase out his predecessor’s massive stimulus programme. REUTERS