TOKYO, March 19 Outgoing Bank of Japan Governor
Masaaki Shirakawa said on Tuesday central banks must respect
communication with markets but in the end have to make monetary
policy decisions that are most desirable for long term economic
"What may be desirable for market participants may not be
necessary the same as what is desirable for the economy in the
long run," Shirakawa said in his last news conference as head of
the central bank.
"I feel it is dangerous to believe that central banks can
freely control market moves with words," he said.
Shirakawa will be succeeded by incoming Governor Haruhiko
Kuroda, who assumes the post on Wednesday.
The career central banker leaves the BOJ on Tuesday after a
five year term during which he battled a serious of shocks such
as the aftermath of the collapse of Lehman Brothers in 2008, the
euro-zone debt crisis and the devastating earthquake and tsunami
that hit Japan in March 2011.
He was credited for protecting Japan's banking system from
such shocks but failed to put a sustained end to Japan's chronic
deflation, often criticised as acting too little too late.