Friday, May 24, 2024

A Japanese official outlines the first step in a mounting debt crisis



In an interview with Reuters early on Tuesday, Japan’s Economy Minister Shigeyuki Koto said banking sector problems in the United States and Europe were caused by liquidity and interest rate risks, but they would not affect the Japanese economy and financial system for now. .

Asked whether US banking woes could delay the Bank of Japan’s efforts to normalize its policy in the future, Goto said he expects the central bank to steer policy flexibly and appropriately as the Japanese official made the following points. :

  • What happened to the West was due to liquidity and interest rate risks.
  • Financial institutions and authorities must respond decisively to liquidity risks.
  • I don’t see the US financial sector facing major problems.
  • Some potential risks have emerged that call for drastic measures, such as a review of the global economic outlook and financial market volatility, as Western countries continue to tighten monetary policy.
  • As a central bank, the Bank of Japan should handle monetary policy operations, but I don’t see the current financial situation affecting Japan’s economy and the financial sector as a whole.
  • I expect the BoJ to steer monetary policy flexibly, meaning the BoJ should do so in response to economic conditions and financial markets.
  • With Japan’s economy in a weak state, it will be difficult to use sales tax revenue as a source of funding for additional childcare costs.
  • As a first step to stem Japan’s growing debt, he described the Japanese government as sticking to a goal of balancing the country’s primary budget by the end of the March 2026 fiscal year, excluding new bond sales and debt servicing costs. Easy.

Goldman Sachs and Bank of America expect when the Bank of Japan will change policy

See also  The Turkish lira has seen significant improvement since the end of the Financial Regulatory and Oversight Agency.
Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

Share post:


More like this

Cost-effective drilling: how to reduce operational expenses by smart equipment choices

Drilling costs affect the profitability and sustainability of oil...

Navigating the World of Cryptocurrencies: How to Choose the Best Crypto Wallet

In the digital age where cryptocurrencies are rapidly gaining...

Unlock the easiest way to get EU citizenship of Slovenia and Romania with Union Permits

Due to the nature of their immigration programs, Slovenia...

The Ultimate Guide to Men’s Facials in Dubai

In the bustling city of Dubai, where the sun...