In the post policy meeting, BoJ Governor Haruhiko Kuroda indicated that the central bank has already taken a step forward to further monetary easing. And, the tools include cutting short-, long-term interest rates, increasing asset buying or accelerate the pace of base money expansion.
Kuroda said, “today, we went a step forward by saying we’ll take additional easing steps without hesitation if there is a risk the economy will lose momentum for hitting our price target”. And, “previously, we said only that we will consider acting if the economy loses momentum for hitting our price goal.”
Nevertheless, Kuroda also noted “I don’t think Japan has lost momentum to hit the BOJ’s price goal, or that there is an imminent risk of this happening.”. While, policymakers need to pay attention to downside risks, for now, “we expect the economy to continue expanding moderately, and that it is sustaining momentum for hitting our price goal.”
