Bank of Japan Governor Haruhiko Kuroda said policymakers are prepared to employ all potential tools that would help the central bank achieve its 2% inflation goal, saying now is the best time to overcome deflation.
In his first address after the BOJ’s move to retain negative interest rates and revamped stimulus program last week, the BOJ head stressed curtailing monetary policy won’t make any sense, adding the central bank will cultivate innovation and never succumb to challenge.
Kuroda disclosed that the primary reason for monetary easing would be to decrease the target for 10-year sovereign bond yields and deepen negative rates. He also said the rate of asset purchasing won’t affect the policy.
The central bank made suddenly swerved following grand-scale money printing failed to bolster the stagnating Japanese economy and attain the BOJ’s inflation goal.
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