Bank of Japan Governor Kazuo Ueda said Tuesday that the central bank will work closely with the government on the Japanese government bond market situation as long-term interest rates rise at a relatively fast pace.
Speaking to reporters after a Group of Seven finance chiefs and central bankers’ meeting in Paris, Ueda acknowledged that long-term interest rates have been rising recently and are aware they are increasing rapidly.
The BOJ governor said the central bank will assess market situation and functionality when asked about tapering plans. He added that the bank will take appropriate monetary policy to achieve its inflation target.
Ueda told the gathering that G7 central banks agreed rising energy prices are affecting inflation expectations, the economy and financial markets. He said the latest GDP data are mostly in line with BOJ forecasts, though the Middle East situation has begun to have an impact.
The governor said the central bank needs to closely monitor signs of upward price pressure.
Japanese Finance Minister Katayama told G7 counterparts the group should be united in calling on China to refrain from distorted industrial policy. Katayama said Japan is ready to take decisive action on foreign exchange.
