6 Party Heads Want BOJ to Continue Easing; 3 Seek Review

Politics Economy

Tokyo, June 19 (Jiji Press)--Japan's Prime Minister Fumio Kishida, also president of the ruling Liberal Democratic Party, and leaders of five other political parties in the country, called for the continuation of the Bank of Japan's massive monetary easing in a television debate Sunday.

In the debate, held in the run-up to the July 10 election for the House of Councillors, the upper chamber of Japan's parliament, three other party heads, including Kenta Izumi of the main opposition Constitutional Democratic Party of Japan, proposed a review in the monetary policy.

Kishida said: "Monetary policy affects interest burdens on small companies. We need to consider (whether to continue the ultraeasy policy) comprehensively also by taking account of overall economic developments. The massive monetary easing should not be changed under the current circumstances."

In Japan, "prices are weak except for energy and fresh food," Natsuo Yamaguchi, chief of Komeito, the coalition partner of the LDP, said, showing his support for the BOJ to keep its current policy intact. Japan cannot do the same as in the United States and Europe, where wages are rising, he added. The central banks in the United States and Europe have started monetary tightening to bring inflation under control.

Ichiro Matsui, head of Nippon Ishin no Kai (Japan Innovation Party), said, "If housing loan rates rise (after a possible review of the BOJ's ultraeasy policy), some people may be forced to sell their homes."

[Copyright The Jiji Press, Ltd.]

Jiji Press Bank of Japan