DJ: Shirakawa Says BOJ's Monetary Easing Not Aimed At Manipulating Yen

TOKYO--Bank of Japan Gov. Masaaki Shirakawa said Thursday that the central bank's stepped-up monetary easing is not aimed at guiding the yen's exchange rate, rejecting allegations that the BOJ may be trying to weaken the currency.

"Our purpose is not to guide exchange rates but to overcome deflation in the near-term and bring about sustainable growth with price stability," Mr. Shirakawa said at his regular post-policy board meeting press conference.

Mr. Shirakawa said that while monetary policy in a globalized financial market does tend to affect foreign exchange rates, this is a separate matter from what each central bank is trying to achieve through its policy.

He added that he will explain the BOJ's aggressive action in January to target 2% inflation at the upcoming Group of 20 meeting of finance ministers and central bank governors.