According to Reuters, Vice President of the Bank of Japan, Shinichi Uchida, made it clear today that "interest rate hikes will not be implemented" in the face of unstable financial capital markets. He explained that unlike the interest rate hike process in Europe and the United States, Japan is not in a situation where 'if interest rates are not raised at a certain pace, it will lead to policy response lag'. He stated that if the market remains unstable, it is necessary to maintain the current loose policy in the short term.

Vice President Uchida pointed out that due to concerns about a slowdown in the US economy, there has been a rapid weakening of the US dollar and a decline in stock markets worldwide. He said, "Especially the yen/dollar exchange rate, due to the accumulation of a large number of positions in the direction of yen weakness before, these positions have now retreated and fluctuated greatly. The stock market has also fallen more than other countries due to the correction of yen weakness.

He pointed out that the volatility of the stock market affects the investment behavior and asset effect of enterprises, which in turn affects the prospects of personal consumption, economy, and prices, which is an important factor in policy operation. The Bank of Japan will closely monitor the movements of domestic and foreign financial and capital markets with a high sense of tension, and respond appropriately in policy operations.

In addition, Vice President Uchida personally stated that he believes there is a high possibility of a "soft landing" for the outlook of the US economy.

At the time of writing this article, the Nikkei 225 index has rebounded to 35000 points, while the Eastern Stock Exchange points out that it has also returned to above 2500.