Yen's Rise Forced BOJ to Enter Unexplored Area: 2010 Minutes
Tokyo, Jan. 25 (Jiji Press)--The Bank of Japan started buying risky assets such as stocks in 2010, entering an unexplored area as a central bank due to the yen's rapid advance, according to detailed minutes of BOJ Policy Board meetings released Monday.
At its monetary policy meeting in October 2010, the BOJ started considering launching a comprehensive monetary easing scheme, including purchases of exchange-traded funds, which led up to the Japanese central bank's current massive easing policy.
With the scheme, the BOJ was going to step into an area it had never been before, the minutes quoted then BOJ Governor Masaaki Shirakawa as saying.
At the time, the U.S. economy was at a standstill following a recovery from the 2008 global financial crisis, with European fiscal woes lingering. As a result, the yen attracted safe-haven buying and shot up against the dollar.
The Japanese economy was covered by "an excessively pessimistic atmosphere," then BOJ policymaker Tadao Noda said.
[Copyright The Jiji Press, Ltd.]