Bank of Japan Governor Haruhiko Kuroda indicated Tuesday he does not believe the recent volatility in the Tokyo stock market has been triggered by concern over Japan’s economy, according to economic and fiscal policy minister Akira Amari.
“The stock market has been seemingly unstable, but no data have shown that the economic situation both at home and abroad has changed,” Amari quoted Kuroda as saying during a meeting of the Council on Economic and Fiscal Policy.
Amari, at a news conference after the meeting of the government panel, also quoted Kuroda as saying, “Japan’s economy is on a steady path to recovery…the BOJ will support it by implementing quantitative and qualitative monetary easing in a steady manner.”
Financial markets have become volatile as the BOJ’s aggressive monetary easing has caused a massive inflow of funds into the global markets, some analysts said. On Tuesday, the 225-issue Nikkei Stock Average closed up 169.33 points, or 1.20 percent, from Monday at 14,311.98, after swinging more than 450 points. The index plummeted about 1,140 points last Thursday.
At the panel meeting, Prime Minister Shinzo Abe pledged to clarify his government’s policy of simultaneously pursuing economic revitalization and fiscal consolidation in its medium- to long-term economic and fiscal policy blueprints, scheduled to be released in June.
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