Fed, BOE rate hikes pose no risk to financial markets - BOJ's Iwata

FXStreet (Mumbai) - Speaking at the Upper House Financial Affairs Committee earlier today, Bank of Japan (BOJ) Deputy Governor Kikuo Iwata noted that increases in the borrowing costs of the US Federal Reserve and the Bank of England do not pose a risk to financial markets and the BOJ will not hike rates to prevent the yen from a steep fall.

He also said the BOJ is conducting simulations about how to end its ultra-loose monetary policy, including its purchase of exchange-traded funds, but he declined to provide any specific strategy for the time being.

Key Quotes:

"I don't see these moves as a risk."

"It could be fully priced in. In that case, there wouldn't be much reaction. Central banks conduct monetary policy for price stability, not for currencies."