BOJ Likely to Keep Monetary Policy Intact

Economy

Tokyo, Dec. 15 (Jiji Press)--Members of the Bank of Japan's Policy Board are likely to decide to keep the central bank's massive monetary easing policy unchanged when they hold a two-day meeting from Monday.

The BOJ policymakers are expected to assess at the meeting how the Japanese economy has been affected by rising prices of food, daily necessities and other goods stemming from higher materials prices and the yen's weakening.

The core consumer price index for Tokyo's densely populated 23 special wards, considered a leading indicator for nationwide price trends, climbed 3.6 pct in November from a year before, its fastest rise in 40 years and seven months. While the yen's rapid fall against the dollar has come to a pause for now on the currency exchange market, the uptrend of resources and materials prices caused by Russia's invasion of Ukraine continues, and more and more companies are moving to pass on rising costs to prices.

Under such circumstances, there is persistent speculation among market players that the BOJ may decide to make monetary policy adjustments toward next year.

Still, BOJ Governor Haruhiko Kuroda said it is "too early" to have concrete discussions on the framework of monetary policies, and many within the BOJ apparently believe the central bank should continue the current easing measures, sources familiar with the matter said.

[Copyright The Jiji Press, Ltd.]

Jiji Press Bank of Japan