NAGOYA, Japan (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank has not limited its monetary easing tools to interest rate cuts, stressing that other options remain on the table if it were to ramp up stimulus.
The BOJ kept policy steady last week but tweaked its forward guidance – or a promise central banks make on future monetary policy – to say it will maintain ultra-low rates or even cut them for as long as needed to gauge overseas risks.
Kuroda - Forward - Guidance - BOJ - Stance
Kuroda said the new forward guidance reflected the BOJ’s stance of leaning more toward additional easing and its “downward bias on policy rates”.
But he added that rate cuts were only among the four options the central bank had in easing policy, which included an increase in asset purchases and an acceleration in the pace of its monetary printing.
Guidance - Measures - Rate - Cuts - Kuroda
“(The new forward guidance) does not limit additional monetary easing measures to rate cuts,” Kuroda said.
“There is no change to our understanding that, besides lowering policy rates, there are various possible measures for additional easing,” he said in a speech to business leaders in Nagoya, central Japan.
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