BoJ governor ready to expand monetary stimulus | The Daily Star
12:00 AM, April 14, 2019 / LAST MODIFIED: 12:02 AM, April 14, 2019

BoJ governor ready to expand monetary stimulus

Bank of Japan Governor Haruhiko Kuroda said on Friday the central bank was ready to expand monetary stimulus if needed, brushing aside the view the BOJ had little ammunition left to fight the next economic downturn.

Kuroda said it was true major central banks may have less room to cut interest rates because they are already very low after years of aggressive monetary easing.

“But that doesn't mean central banks have no ammunition left to ease further in response to financial developments,” Kuroda told a news conference after the Group of 20 finance leaders' meeting.

“The BOJ also has room to ease monetary policy further if doing so becomes necessary,” he said.

The remarks underscore the challenge major central banks face as they struggle to battle growing overseas headwinds to their economies with a dwindling policy tool kit.

The Federal Reserve and the European Central Bank have paused in their efforts to dial back crisis-mode policies. But the BOJ has failed to fire up inflation to its elusive 2 percent target despite years of money printing.  

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