Speaking at a business conference, Uchida said, “There is sharp volatility in both domestic and overseas markets. Under such circumstances, it is better to maintain the current level of monetary easing.” The comments came after a period of intense market turbulence triggered by the BoJ’s previous policy decision to tighten monetary policy.

Last week, the BoJ surprised markets by announcing a reduction in its massive bond-buying program and a slight increase in interest rates. The unexpected move, coupled with growing concerns about a US recession, sent shockwaves through global financial markets, including cryptocurrencies. Bitcoin, for example, plummeted to around $49,000.

However, Uchida’s latest remarks have helped to calm investors’ fears. Following his comments, the Nikkei index surged by 3%, and Bitcoin rebounded to above $57,000. The Japanese yen also weakened against the US dollar.

Uchida emphasized that the BoJ would closely monitor the impact of market volatility and that a single US economic data point could have a disproportionate effect on market sentiment. His comments suggest that the central bank is in no rush to tighten monetary policy further.

While BoJ Governor Kazuo Ueda has hinted at the possibility of additional rate hikes this year, Uchida’s remarks have tempered expectations.

The BoJ’s initial policy shift had sparked concerns about a global tightening of monetary policy, which could potentially lead to a recession. However, the central bank’s latest comments have helped to alleviate these fears.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bank of Japan Pushes Back on Rate Hikes, Calming Jittery Markets appeared first on Coin Engineer.