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RBA not attacking Japan over yen

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AAP

2013-02-22

Remarks made by a Reserve Bank of Australia (RBA) board member about the devaluation of the Japanese yen don't reflect the views of the central bank, governor Glenn Stevens says.

This week week RBA board member Heather Ridout delivered a speech to an Australian Workers' Union conference criticising the Japanese government for devaluing the yen.

"She would not have been claiming to speak on behalf of the bank or the board - that would be my job, that's understood by the board members," Mr Stevens told the House of Representatives economics committee in Canberra on Friday.

"We are not attacking Japan.

"We noted in the published minutes of our meeting that the yen had moved and that's a fact, it's not an attack."

Mr Stevens said the recent change of government in Australia's second largest trading partner has seen quite a big lift in its stock market.

He thought this reflected confidence on the part of investors that the new government will have more ways to stimulate the economy than the old one.

Mr Stevens said the weakening of the yen against most currencies, including the Australian dollar, was been a bone of contention at the recent Group of Seven and Group of 20 meetings.