Thursday, October 24, 2013
BOJ Closely Watching U.S. Trends, Monetary Policy: Kuroda
TOKYO (NQN)--Bank of Japan Gov. Haruhiko Kuroda said Thursday morning that the central bank will continue to carefully monitor U.S. economic trends and the possible effects that U.S. monetary policies will have on financial and capital markets and on the global economy.
Kuroda was speaking at a meeting of the upper-house budget committee to address potential market turmoil that could result from a cutback in the Federal Reserve Board's bond purchases. His comments were in response to a question from Yuichiro Uozumi, an upper-house member who belongs to New Komeito.
In May, market participants began speculating on exactly when the Fed would start tapering its quantitative easing. Kuroda thinks that the international financial and capital markets have been uneasy ever since, which has been reflected in erratic market movements.
Kuroda also noted the recent drop in currencies and stocks of emerging markets that have current account deficits. "Such effects have been happening all over the world, and we have to admit that they have had a certain impact on the Japanese economy," Kuroda said.