The quantitative and qualitative monetary easing, or QQE, policy introduced by the Bank of Japan, or BOJ, to reach target inflation rates has been having its intended effects, BOJ Deputy Governor Hiroshi Nakaso said in his speech on Wednesday.
Speaking at a meeting with business leaders in Shizuoka, the deputy governor said though the current inflation rate of 1 1/4 percent is only half of the 2 percent target, the desired rate will be reached in or around 2015.
"with global financial markets remaining stable and the recovery of overseas economies, including business fixed investment, gaining strength, it seems likely that the factors hampering Japan's exports will gradually disappear. Therefore, real exports are expected to increase moderately." he said. On Japan's financial systems, he said, "At present, there are no significant problems concerning the stability of the financial system. Japanese financial institutions as a whole have a sufficient capital base, and even if there should be a large domestic financial or economic shock, the likelihood that financial intermediation will be significantly impaired is very small"
He also said that in pursuing QQE, it is important to examine the performance of regional economies through the Bank's nationwide branch network, including the Bank's Shizuoka branch.
"I
sincerely hope that the various initiatives in Shizuoka
Prefecture will bear fruit and the region will enjoy further growth
in the future." he said.
