TOKYO, Feb 16 (Reuters) - The head of Japan's banking
lobby said on Thursday that new leadership at country's central
bank should engage in sufficient dialogue with financial markets
when it embarks on an exit from ultra-loose monetary policy.
The government this week named Kazuo Ueda as its pick to
become next Bank of Japan (BOJ) governor, a surprise choice that
could heighten the chance of an end to its unpopular yield
control policy.
"We expect the BOJ to steer an exit away from massive
monetary easing at some point in the future if it foresees
sustained and stable price consumer price growth coupled with
wage increases," Junichi Hanzawa, chairman of the Japanese
Bankers Association, told reporters.
Hanzawa, also the chief executive of MUFG Bank, cautioned
that policy adjustments by the BOJ could increase volatility in
financial and capital markets.
"To reduce such risks, we hope the BOJ, under the new
leadership, will make appropriate decisions that ensure markets
function healthily through sufficient dialogue such as forward
guidance," he said.
(Reporting by Makiko Yamazaki; Editing by Edwina Gibbs)
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