BoJ Deputy Governor Masayoshi Amamiya signals today that the central bank stand ready to loosen up monetary policy further. In a speech to business leaders, he said, “the BOJ is no different from other major central banks, in that it is prepared to take, if necessary, policy action to prevent risks from materializing.”

He added that overseas risks could spillover to Japan and, “We need to be mindful that the economy may lose momentum if risks, mainly those from overseas economies, materialize”. BoJ’s tool set includes rate cuts and asset purchases and policy makers may “combine these steps or apply them in various forms.”

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