Despite calls from politicians for the Bank of Japan to further ease its grip on monetary policy, BOJ Gov. Masaru Hayami reiterated Monday morning that the central bank will continue its present easy monetary stance and remain vigilant to downward pressures on the economy.
At a quarterly meeting with BOJ branch heads, Hayami remained cautious about the outlook for the economy, citing as potential downward risks the slowdown in overseas economies leading to a decline in exports and upcoming developments in foreign and domestic capital markets.
"The awareness of these risks and the approaching end of the fiscal year are among the factors causing slight volatility in financial markets," he said.