BOJ’s Shirakawa: More Downside Risk for Economy, Upside Risk for Prices Higher Than in April
BOJ Governer Masaaki Shirakawa expressed concern over Japanese economic growth, saying he expects downside risks to increase while price pressures have risen since April. Speaking after the BOJ’s decision to hold its headline interest rate at 0.5%, he also noted:
*The economic situation in Japan differs from the envirnoments in the US and Europe
*Nations should choose monetary policy based on their economies
*Global inflation risks are intensifying
*Currencies should reflect economic fundementals
*Downside risks for the US econom are still high
*Monetary policy should not be focused on impact to forex markets
*Global markets remain unstable