OSAKA -- Bank of Japan Gov. Masaru Hayami said Thursday that the BOJ's decision Aug. 11 to abandon its "zero-interest-rate" policy was made after fully taking into account local economic conditions across the country.
Speaking at a press conference after holding discussions with business leaders in Osaka, Hayami brushed aside criticism that the BOJ only considered economic conditions in the Tokyo area, where business prospects are brighter than in other regions.
"We understand local economic conditions through reports from our local branch chiefs," Hayami said. "Although I understand that economic conditions and business performance are not so good in some regions compared to those in Tokyo, the overall economy is recovering."
Despite strong pressure from the government and some business circles, the BOJ raised the target rate in guiding the key unsecured overnight call money rate to 0.25, ending its 18-month-old policy.
Hayami showed some satisfaction with the BOJ's action, saying the market has been stable and that the central bank has received many thank-you letters, especially from people who live on pensions.