Japan: Asia has been affected less by the financial crisis than the United States

Bank of Japan Governor Kazu Uida said Asia’s risks were lower than those of other regions, referring to the banking crisis that has engulfed the United States and European countries.

According to the Governor of the Bank of Japan, the region’s financial institutions have sufficient capital reserves and are less vulnerable to bank distress.

Earlier, Ueda said that the risk of higher inflation stemmed from the loss of market confidence in Japan’s financial affairs was currently low, and the Bank of Japan’s facilitative monetary policy was not aimed at financing government spending, adding that balancing was very difficult, as it depended on current economic developments.

He also noted that consideration of government debt financing costs would not restrict the Bank of Japan’s monetary policy movements, and the cost-payment inflation resulting from higher raw material costs was likely to have receded, noting the challenges faced by the Bank of Japan to curb inflation because it required a balance between controlling high inflation and supporting the economy.