After meeting the PM, Kuroda said that the BOJ and government are working closely together on FX.
Tokyo (Reuters) -Haruhiko Kuroda, the governor of the Bank of Japan, said on Monday that the central bank hoped to act appropriately in the currency markets by working closely with the government. He also warned again about recent sharp drops in the yen.
“I told the prime minister that the yen’s recent quick moves were not good,” Kuroda told reporters after meeting with Prime Minister Fumio Kishida at the official residence of the prime minister.
“(Kishida) didn’t say anything particularly interesting, but I told him that it was important for currencies to move in a way that reflected the fundamentals of the economy,” Kuroda said.
He believes that the recent rapid depreciation of the yen will make it difficult for businesses to plan ahead.
“I’ll keep a close eye on how the currency changes from now on, and I’ll respond to them in the right way while talking to the government.”
Kuroda said that during the meeting, he and the prime minister talked about the world economy and financial markets. This was a regular meeting between the two men.
On Friday, the BOJ kept interest rates at very low levels and promised to protect its cap on bond yields by buying unlimited amounts of bonds. By doing this, it went against a global trend of monetary tightening and showed its determination to support a slow economic recovery.
