Bank of Japan Governor: "Monetary Easing Has More Benefits Than Side Effects"

Candidate for Governor of the Bank of Japan
Determined to Continue Monetary Easing Policy

Kazuo Ueda, the nominee for Governor of the Bank of Japan, has expressed his intention to maintain large-scale monetary easing policies for the time being.

According to the Nihon Keizai Shimbun and Kyodo News on the 27th, Ueda appeared before the House of Councillors (Upper House) Steering Committee and stated, "Monetary easing has more advantages than side effects."

[Image source=Yonhap News]

He evaluated monetary easing by saying, "It has contributed to improving corporate profits and employment conditions, and created a situation that is not deflation," but also explained, "Since there are various side effects, it is appropriate to continue while considering them."

Regarding the side effect of rising prices often mentioned in relation to monetary easing, he reiterated his position not to immediately revise the joint statement by the government and the Bank of Japan targeting a 2% inflation rate, saying, "Prices are not determined by monetary easing alone."

On the 24th, Ueda also expressed a positive stance on monetary easing at the House of Representatives (Lower House) Steering Committee, stating, "Although various side effects have emerged, considering the economic and price situation, it is a necessary and appropriate measure."

He said, "It is not that I am not thinking about specific methods to review monetary easing," adding, "If the goal of a 2% inflation rate can be achieved continuously and stably, I will start movements and discussions toward the normalization of monetary policy."

Ueda, an economist by background, was appointed as the new Governor of the Bank of Japan on the 14th. Upon approval by both houses of the National Diet, he will take office on April 9. The term for the Governor of the Bank of Japan is five years.

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