(Photo= Yonhap news)

[Alpha Biz= Reporter Kim Minyoung] On August 7th, the Japanese stock market rose significantly after Japan's central bank, the Bank of Japan (BOJ), indicated that it would not raise interest rates amid ongoing financial market instability.

Bank of Japan Deputy Governor Shinichi Uchida, speaking at a financial and economic forum in Hakodate City, Hokkaido, assured that the central bank would maintain its current monetary easing policy in light of the unstable financial capital markets. Uchida emphasized the need to carefully monitor market conditions and maintain the current level of financial easing for the time being.

He explained that the BOJ's decision to raise interest rates by 0.25% during its July monetary policy meeting was based on the rising import prices due to yen depreciation. However, Uchida noted that the central bank's future interest rate decisions would depend on the realization of economic and inflation forecasts. He acknowledged that recent fluctuations in stock prices and exchange rates had influenced the BOJ's stance on interest rates.

Uchida's comments led to a rally in Japanese stocks, with the Nikkei 225 index rising by 1.19%, and briefly increasing by over 3% during trading. The TOPIX index also saw a gain of 2.3% on the same day.

 

 

 

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