17 May 2005, 10:49  Bank of Japan, Toshiro Muto: We will not waver in continuing our easy policy

Bank of Japan Deputy Governor Toshiro Muto said on Tuesday that debate among board members over its reserves target should be seen as staying within the boundaries of its current easing framework. Muto also told a parliamentary committee that the BOJ remains committed to its pledge of keeping its "quantitative easing" framework in place until consumer prices turn positive. "We will not waver in continuing our easy policy of supplying ample liquidity under our clear commitment to the consumer price index," he told a parliamentary committee. The BOJ will hold its next policy-setting meeting later this week. The nine-member Board has recently been split over whether to lower the central bank's target as fund demand from commercial banks has fallen due to receding concerns about the financial system.

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