BoJ's Kuroda Sees No Limit For Monetary Easing Measures
February 02 2016 - 7:59PM
RTTF2
Bank of Japan Governor Haruhiko Kuroda said there is no limit to
measures for monetary policy easing and it is open to expand asset
purchases further, if necessary.
"If we judge that existing measures in the toolkit are not
enough to achieve the goal, what we have to do is to devise new
tools, rather than give up the goal," Kuroda said in a speech in
Tokyo.
In January, the bank surprised the markets by introducing
negative interest rate.
Kuroda said the "zero lower bound" of interest rate was believed
to be impossible to conquer, but it has been almost overcome by the
wisdom and practices of central banks.
If judged necessary, there is ample room for the BoJ to further
expand the size of asset purchases, the banker said.
At the December meeting, the policy board debated over the
supplementary measures for quantitative and qualitative easing.
Some members said the bank should facilitate smoother asset
purchases and dispel concerns about the sustainability of the
programme by taking appropriate measures, the minutes of the
monetary policy meeting held on December 17 and 18 showed
today.
A few members said the extension of maturity period of Japanese
government bonds would ensure flexible and smooth conduct of JGB
purchases into the future.
But few other members noted that such an extension could
decrease the stability of the JGB purchase and prolong the period
required for normalization of monetary policy.
The remaining maturity of JGB purchases was extended by a 6-3
majority vote.
The board had decided by a vote of 6-3 majority to introduce a
new program for purchases of exchange-traded funds at an annual
pace of about JPY 300 billion.
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