Tokyo, June 19 (Jiji Press)–Japanese Prime Minister Fumio Kishida, also chairman of the ruling Liberal Democratic Party, and leaders of five other political parties in the country have called for continued massive monetary easing by the Bank of Japan in a televised debate on Sunday.
During the debate, held ahead of the July 10 election for the House of Councillors, Japan’s upper house of parliament, three other party leaders, including Kenta Izumi of the main opposition Constitutional Democratic Party of Japan, have proposed a revision in monetary policy.
Kishida said: “Monetary policy affects interest burdens on small businesses. We need to look at (the continuation of super-easy policy) in a comprehensive way also taking into account the overall economic development. Monetary easing massive should not be changed under the current circumstances.”
In Japan, “prices are low except for energy and fresh food,” said Natsuo Yamaguchi, leader of the LDP’s coalition partner Komeito, showing support for the BOJ to keep its current policy intact. . Japan cannot do the same as the United States and Europe, where wages are rising, he added. The central banks of the United States and Europe have started monetary tightening to control inflation.
Ichiro Matsui, leader of Nippon Ishin no Kai (Innovation Party of Japan), said: “If housing loan rates rise (after a possible revision of the BOJ’s super-easy policy), some people might be forced to sell their house”.
[Copyright The Jiji Press, Ltd.]
Jiji Press Bank of Japan