BOJ‘s Shimizu warns of ’extremely high‘ uncertainty over Japan’s economy

By Leika Kihara

WASHINGTON (Reuters) -Bank of Japan (BOJ) Assistant Governor Tokiko Shimizu said on Friday there had been “extremely high” uncertainty regarding Japans economy, as slowing global growth and recent financial market stress cloud its outlook.

“The BOJ deems it necessary to conduct monetary easing and support the economy, and provide a favourable environment for firms to raise wages,” Shimizu told a seminar hosted by the Peterson Institute for International Economics.

Rapid interest rate hikes by U.S. and European central banks could eventually depress global growth, which was among risks discussed at this weeks International Monetary Fund (IMF) meetings, Shimizu said.

“More recently, financial market stress is drawing attention,” she said. “Taking these risks into account, it‘s necessary to pay due attention to developments in the financial sector” and the impact on Japan’s economy and prices, she said.

(Reporting by Leika KiharaEditing by Mark Potter)