The post Necessary to adjust degree of monetary easing to make rate closer to neutral rate appeared on BitcoinEthereumNews.com. The Bank of Japan (BoJ) board member Naoki Tamura said on Thursday that the central bank should push the interest rates closer toward levels deemed neutral. Key quotes Decline to comment when asked whether to propose rate hike at Oct meeting. Believe necessary to adjust degree of monetary easing to make rate closer to neutral rate. Need to closely monitor US tariff impact, should not have any pre-conception in assessing data. Uncertainty remains over tariff impact on Japanese economy, will examine data. Important for markets to move in a stable manner reflecting fundamentals. Market reaction   At the press time, the USD/JPY pair is up 0.03% on the day to trade at 151.09. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance. The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation.… The post Necessary to adjust degree of monetary easing to make rate closer to neutral rate appeared on BitcoinEthereumNews.com. The Bank of Japan (BoJ) board member Naoki Tamura said on Thursday that the central bank should push the interest rates closer toward levels deemed neutral. Key quotes Decline to comment when asked whether to propose rate hike at Oct meeting. Believe necessary to adjust degree of monetary easing to make rate closer to neutral rate. Need to closely monitor US tariff impact, should not have any pre-conception in assessing data. Uncertainty remains over tariff impact on Japanese economy, will examine data. Important for markets to move in a stable manner reflecting fundamentals. Market reaction   At the press time, the USD/JPY pair is up 0.03% on the day to trade at 151.09. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance. The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation.…