Chairman's Comment on BOJ Abandoning the Zero Interest Rate Policy

On July 14, the Bank of Japan (BOJ) announced that it had abandoned the zero interest rate policy and the JBA Chairman issued the following comments on the same day.

The Japanese economy is undergoing a balanced economic recovery, with improved corporate earnings, increasing capital investment and robust consumer spending. The consumer price index shows a clear plus trend.

We think that the BOJ’s decision to abandon the zero interest rate policy based on these factors was the proper decision. Abandoning the zero interest rate policy is part of a process for restoring the function of interest rates, following the departure from the ultra-loose monetary policy. We hope the BOJ will adhere to an appropriate monetary policy for realizing sustainable economic growth and stable prices.