News Headline Summary

Japanese PM Abe says he'll leave monetary policy to Bank of Japan

Says:

- It is global norm for government to decide price target.
- Markets reacting to how BoJ policy differs from before.
- Inflation targeting showing results in rising expectations.
- JPY strength prolongs deflation.
- BoJ is also mandated to prevent prices from rising well above 2%.
- Proper BoJ measures will lift prices towards 2% target.
- Need to watch for asset bubbles caused by monetary easing.
- Effect of BoJ's monetary easing will initially be on FX and stock prices which will help boost manufacturers' profits.
- Has no intention of saying what level is good for JPY.
- Committed to cutting primary budget deficit in half in 2015 from 2010 level.
- Deflation is a monetary phenomenon.
- Wants central bank to choose correct policy measures.
- Idea exists of Japan buying foreign bonds.

Reaction details (01:25)

- No immediate reaction seen in USD/JPY following these comments.

18 Feb 2013 - 01:07 - - Source: Newswires

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