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Japanese firms want stability, not change from new BOJ chief – Reuters poll

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Tim Kelly

TOKYO (Reuters) – Most Japanese companies want Bank of Japan chief Kazuo Ueda is focused on financial market stability at his first policy meeting next week, with few seeing benefits from easing his ultra-loose monetary policy, a monthly Reuters poll showed.

Ueda has so far indicated he intends to maintain these accommodative conditions, despite telling parliament this week that Japan is still on track to hit the central bank’s 2% core inflation target . almost100 Major companies under investigation, % said they wanted financial stabilization measures and a third said Ueda should Maintain the policies of his predecessor Haruhiko Kuroda.

“The market is volatile, so hopefully the new board will maintain the stability of the old board,” said a representative of an electric motor maker, which did not name the company.

Businesses are cautious after the IMF downgraded its global growth outlook

, as it warned that financial system turmoil could flare up badly and said nervous investors might try to test the “next weakest link” in the financial system following the Swiss government’s bailout of Credit Suisse.

Just under a quarter of Japanese companies polled by Reuters said they wanted to revise the Bank of Japan’s negative interest rate policy, down from two months. Nearly half of the former when Ueda was nominated for his role.

Fewer firms also urged the central bank to revise its inflation target, lowering it to % from% of respondents in February.

“The zero interest rate policy has been loosened, but if interest rates rise it could lead to an increase in bad debts, which could trigger a recession,” said a manager who did not A steelmaker who wished to remain anonymous.

Markets are rife with speculation that Ueda will phase out stimulus and will be closely watching his first policy meeting in April -, when the BOJ board will publish new quarterly growth and inflation forecasts, extending to the full fiscal year 28. Ueda, in his first parliamentary appearance as governor on Wednesday, defended Kuroda’s increased purchases of government bonds as part of his push for 2 percent inflation. He also urged companies to invest in their workforces.

Reuters Corporate Survey, conducted by

for Reuters Nikkei

April 5th to Thursday moon, canvassing 25 large non-financial Japanese corporations including 25 Manufacturer and 28 Not the manufacturer.

They were voted anonymously, allowing respondents Speak more freely.

Click here for more detailed poll results. 400



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