JPMorgan Chase has acquired the assets of First Republic Bank in a deal to resolve the biggest US bank failure since the 2008 financial crisis.
The Minister of Economy said: “What has happened in the West reflects the scale of liquidity risks and the reflection of high interest rates on the sector. Financial institutions and authorities will have to react strongly to these liquidity risk”. do not see that the American financial sector faces major problems.
Regarding the impact of US banking problems on the Bank of Japan’s efforts to adjust monetary easing policy going forward, Goto said he expects the central bank to steer this flexibly and appropriate, without going into more detail.
He added that there are factors that need attention and monitoring, such as lower expectations for the global economy and fluctuating financial markets as Western countries continue to tighten monetary policy.
The minister pointed out that “the Bank of Japan, as the central bank, is responsible for managing monetary policy operations, and at present, I do not see the current financial situation affecting the Japanese economy and the financial sector as a whole”.
“I expect the Bank of Japan to guide its monetary policy flexibly, which means the central bank should do so appropriately while considering the economy and financial markets,” he said. he adds.
The Bank of Japan kept interest rates unchanged at very low levels, but announced a plan to revise its previous monetary policy measures, paving the way for new governor Kazuo Ueda to phase out the massive stimulus program undertaken by his predecessor.
As for the Japanese economy, the Cabinet Office is expected to announce preliminary gross domestic product data for the first quarter of 2023 on May 17.
Forecasts indicate that Japan’s gross domestic product will grow by 0.2% on a quarterly basis in real price-adjusted terms, in the January-March period, or by 0.8% on an annual basis, for the second consecutive quarter.
Read the Latest World News Today on The Eastern Herald.