Central banks must ensure any action they take in helping society combat climate change are within their mandates and carefully tailored to avoid impairing market neutrality, Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Tuesday.Central banks must also be ready to explain to the public 'what they c
Central banks must ensure any action they take in helping society combat climate change are within their mandates and carefully tailored to avoid impairing market neutrality, Bank of Japan Governor Haruhiko Kuroda said on Tuesday.
"Central banks, which are independent from governments cannot unconditionally respond to climate change," and must"autonomously decide their actions within their mandate" from a long-term perspective, Kuroda said. The BOJ launched in 2021 a scheme under which it offers zero-interest loans that can be rolled over until 2030 to banks that boost green and sustainable loans.
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