NAHA, Okinawa Pref. (Kyodo) The Bank of Japan will not move hastily in ending the “zero-interest-rate” policy and will maintain an accommodative monetary stance even after the policy ends, BOJ Policy Board member Hidehiko Haru said Thursday.
“We will carefully decide when to scrap the zero-interest-rate policy, and an accommodative monetary environment with extremely low interest rate levels is likely to be maintained for a while after that,” Haru said in a speech to business leaders in Naha, Okinawa Prefecture.
“Basically, I believe we are in a situation where we will be allowed to respond without rushing,” he said.
Haru’s remarks echo those of most of his fellow BOJ board members, including BOJ Gov. Toshihiko Fukui.
Haru said that although the central bank’s stance could change in the future, it will try provide information in a timely manner to avoid surprising the market.
Now that core consumer prices are rising, the priority for the BOJ is to ensure sustainable economic growth and price stability, Haru said.
“But we also should monitor the risk of amplifying volatility in the economy and prices due to delays in (making appropriate changes to) monetary policy,” he added.
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