Photo/Illutration Bank of Japan Governor Haruhiko Kuroda responds to a question during a Lower House Budget Committee session at the Diet on Feb. 15. (Koichi Ueda)

Many companies in Japan in a recent survey gave a generally favorable response to the Bank of Japan’s decade-long monetary easing policies under outgoing Governor Haruhiko Kuroda.

In the survey covering about 1,000 companies, the BOJ’s actions were rated at an average of 65.8 points on a scale of 1 to 100, meaning the measures were appreciated to a certain degree. 

In addition, more than half of the respondents said they want the central bank to maintain the status quo or even expand its monetary easing measures.

Kuroda will step down from the post in the spring and economist Kazuo Ueda has been nominated to replace him. 

The online survey was conducted by research company Teikoku Databank Ltd. on Feb. 10-14. It asked companies to rate the BOJ’s monetary easing policy, receiving valid answers from 1,008 respondents.

Of these, those that gave between 80 and 89 points made up the largest group, accounting for 22.2 percent.

Although 14.5 percent gave 90 points or more, 1.4 percent provided fewer than 10 points.

“It was helpful at the time of refinancing. Our business would face difficulties when interest rates rise,” said a clinic operator who gave 80 points.

A representative of a rubber belt manufacturer awarded 90 points, saying: “Small and midsize businesses remained strong.”

Meanwhile, an electric equipment wholesaler gave only 10 points because it wanted the BOJ to come up with a long-term vision, not a stopgap measure, to pursue its policies.

A machinery installation company, which gave 35 points, said, “It should have eased monetary policies only temporarily to boost the economy.”

The survey also asked about a desirable direction for monetary policies in the coming year or so and received valid responses from 955 companies, whose opinions were divided.

Those that called for a reduction in monetary easing made up the largest group of the respondents, accounting for 39.6 percent.

But more than 50 percent said they want the central bank to maintain or strengthen its easing measures, with 36.4 percent citing “a status quo” and 17.6 percent saying they want to see the “further expansion of monetary easing.”

The survey results also showed that while 49.6 percent of large companies called for a reduction in monetary easing, only 38 percent of small and midsize businesses said so.

Some companies said that sudden changes are unfavorable and that they are reluctant to see interest rates on loans rise, while others said they want the BOJ to set up and carry out a process for the normalization.

Related News