WASHINGTON (Kyodo) Credit-tightening moves by central banks in the United States, Europe and Japan are unlikely to hurt the global economy, according to Bank of Japan Gov. Toshihiko Fukui.

At a news conference following a one-day meeting Friday of the Group of Seven economic powers, however, Fukui also noted that the impact of credit tightening may vary depending on each economy, saying the risk of capital transfers is rising in line with globalization.

“Current credit tightening in major G7 economies came after super accommodative monetary stances to tackle the burst of the information technology bubble,” Fukui said.

Tightening credit should be taken as “a process to return to normality” and it will not give a strong shock to the global economy, he said.

It is rather aimed to ensure sustainable economic growth with price stability, Fukui added.

He also said central banks in the G7 major economies have steered cautiously by carefully assessing the impact on their respective economies as well as their counterparts.

Fukui said he briefed his fellow central bank chiefs and finance ministers of the G7 nations about Japan’s termination of the quantitative easing policy on March 9 and the introduction of a new monetary policy framework.

The framework with an inflation reference rate of zero to 2 percent in the medium term is “the most appropriate” given the current situation of the Japanese economy, he said.

The central bank will likely maintain an accommodative monetary stance with extremely low interest rate levels if inflationary pressure remains contained despite the economic recovery, he said.

Regarding rising long-term interest rates at home and abroad, the BOJ chief said interest rates are rising in a similar manner in the U.S., Europe and Japan, and the brisk global economic recovery is behind the movement.

But he also said there were discussions at the G7 talks about possibly major financial risks when uncertain interest rate moves occur. G7 financial leaders agreed that each central bank should closely monitor this kind of development.

The G7 groups Britain, Canada, France, Germany, Italy, Japan and the U.S.

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