MOSCOW (Reuters) - Bank of Japan Governor Masaaki Shirakawa will at Group of 20 finance talks defend Tokyo’s bold approach to monetary easing, saying the policies were aimed at stabilizing the domestic economy.
“The BOJ has taken a step towards bold monetary easing and we’ll explain that,” Shirakawa told reporters in Moscow before G20 finance ministers and central bankers meet later on Friday.
“We are conducting monetary policy focusing on the stability of our domestic economy by escaping deflation and achieving sustainable growth under price stability,” said Shirakawa, who is attending his last G20 before stepping down.
“I believe each country’s policies aimed at stabilizing their own economies will lead to stability of global economy on the whole.”
Shirakawa also said the yen’s weakness on currency markets reflected receding risk aversion among investors.
“The global economy is showing some bright signs … Tail risks from Europe are largely receding and the United States has avoided falling off the ‘fiscal cliff’,” Shirakawa told reporters.
”The biggest factor behind the yen’s weakening lies in receding risk aversion among investors … Demand for the safe-haven yen has declined and that has caused the yen to weaken.
“If currencies are discussed at G20 which involves emerging economies, we would explain the thinking behind the G7 joint statement.”
Reporting by Tetsushi Kajimoto; Editing by Douglas Busvine