BOJ Policy Be 'Comprehensive,' Kishida Argues

Fumio Kishida, Japan's Prime Minister, stated on Saturday, June 18, 2022, that monetary policy should be decided "comprehensively," not just to address the yen's recent decline, Kyodo News reported.

Photo Insert: The Bank of Japan

The prime minister's remark indicates his support for the Bank of Japan's decision to maintain its ultra-easy monetary policy, despite the fact that it may weaken the yen further and raise the cost of imported goods.

In an online debate of party leaders held ahead of the July 10 upper house election, Kenta Izumi, leader of the main opposition Constitutional Democratic Party of Japan, said the central bank should change its policy to prevent the Japanese currency from falling further after it recently hit 24-year lows against the US dollar.

"While a monetary policy affects foreign exchange, it also has a major impact on the burden of interest payments by small- and medium-sized enterprises," said Kishida, who heads the ruling Liberal Democratic Party, adding, "It must be decided comprehensively."

The debate took place as Japan's regular parliamentary session ended on Wednesday, effectively kicking off campaigning for the House of Councillors election at a time when the country is dealing with a weaker yen and rising prices exacerbated by Russia's war in Ukraine. The official campaigning will begin on Wednesday.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic