· Kazuo Ueda Wiki · Bank of Japan WikiCentral bank finances and monetary policy conduct
Read full speech on bis.org ↗ContextSpeech at the 2023 autumn meeting of the Japan Society of Monetary Economics; the Bank of Japan pursues price stability and weighs how exit from easing affects its own finances.
Why it mattersUeda addresses whether future losses could undermine the central bank's credibility.
Problems raised
- Foreign central banks are exiting easy policy and facing losses.
- Japan has not yet reached sustainable 2% inflation.
- Central bank finances may raise questions about policy credibility.
Solutions proposed
- Discuss central bank finances objectively before the exit.
- Keep capital buffers to absorb possible losses.
- Keep policy focused on price stability, not on the central bank's profits.