European Central Bank President Mario Draghi indicated support for Japan’s efforts to beat deflation by suggesting they aren’t aimed at weakening the yen.
With Group of 20 finance ministers and central bankers preparing to convene this week in Washington, Draghi said in Amsterdam today that the increased stimulus announced by the Bank of Japan (8301) this month is “determined by domestic policy considerations” and that “there is no currency war.”
The comments imply backing for Japan’s policies after the central bank surprised investors on April 4 by doubling monthly bond purchases and setting a two-year horizon for achieving its goal of 2 percent inflation, prompting the yen to slide against all of its main counterparts. That salvo left foreign policy makers coupling praise for the effort to boost Japan’s stagnant economy with concern it may come at the expense of their exporters.
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