The head of the central bank of Japan
said that the nation is gradually escaping a prolonged period of deflation that has impeded economic growth, stifled investment and put downward pressure on wages.
Bank of Japan
to hold a two-day meeting of its decision-making Policy Board through Oct.
In Japan, many discussions and analyses are held inside and outside the Bank of Japan
as to who was responsible for monetary policy that led to asset inflation.
In the same year, the government-affiliated Development Bank of Japan
was given an additional [yen]100 billion budget to be invested into funds specifically targeted for corporate rehabilitation.
In a speech at a meeting of the Japan Association of Corporate Executives (Keizai Doyukai), Obuchi said the revised Bank of Japan
Law "says monetary and financial sectors should not be too independent of each other.
Over the subsequent three weeks, the yen continued to depreciate, particularly after the Bank of Japan
on September 8 lowered the ODR 50 basis points, to 0.
The government has been pressing the Bank of Japan
, which operates as an autonomous body under law, to streamline its operations since the revised Bank of Japan
Law was enacted in 1997.
The point is not so much that monetary policy was left "pushing on a string" since the Bank of Japan
could still affect expectations in part through a commitment to quantitative easing (Lessons 7 and 8)--rather, the point is that the Bank of Japan
could not encourage more responsible lending behavior by the banking system until the Financial Supervision Agency did its job and made the banks write off bad loans and recapitalize.
The Bank of Japan
has stated that it will provide liquidity to LTCB, if necessary.
Global Banking News-April 14, 2014--Central bank of Japan
quells stimulus hopes
On May 17, 2003, the Japanese government announced its decision to inject public funds into the bank, pursuant to an application for such assistance under the Bank of Japan
Law Article 38.
CONTACT: Public Relations Department of The Industrial Bank of Japan
, Limited, +81-3-5252-6574/