The Bank of Japan (BoJ) Deputy Governor Ryozo Himino said on Wednesday that the financial and capital markets remain unstable and the Japanese central bank needs to monitor these developments with utmost vigilance.

Key quotes

The financial and capital markets remain unstable.

The BoJ needs to monitor these developments with utmost vigilance.

BoJ also intends to carefully examine the impact these market.

Developments at home and abroad have on the outlet for economic activity and prices, the risks surrounding the outlook, and the degree of confidence in the outlook.

BoJ will adjust the degree of monetary accommodation if it has growing confidence that its outlook for economic activity and prices will be realized.

Will conduct monetary policy as appropriate to achieve the 2% inflation target in sustainable and stable manner while closely communicating with market participants and other stakeholders.

Needs to closely monitor developments in recent market volatilities including weaker stocks and stronger Yen.

BoJ should continue its efforts to refine its approaches to estimate the neutral rate for Japan, and use the results as a useful point of reference.