Markets have misunderstood change in monetary policy: BOJ official

Tokyo

FINANCIAL markets have "misunderstood" the modified monetary framework introduced by the Bank of Japan (BOJ) in September and taken it as a signal of retreat by the central bank from its strong deflation-fighting resolve, a senior official of the central bank suggested at a meeting in Tokyo on Monday.

A senior Ministry of Finance official, speaking at the same meeting, said such an interpretation could have implications for investor and consumer psychology and for the yen exchange rate; he added that the authorities were ready to intervene if currency volatility became severe.