BoJ Governor Haruhiko Kuroda issued a rare emergency statement today, warning of the spread of the Wuhan coronavirus. He said, “Overseas and domestic financial markets continue to make unstable movements due to heightening uncertainty over the impact on the economy from the spread of the coronavirus. The BOJ will monitor developments carefully, and strive to stabilize markets and offer sufficient liquidity via market operations and asset purchases.”
The statement argues that BoJ would use the current tools to counter the impact of coronavirus outbreak first. That is, focuses will be on market operations and liquidity. Apparently, further monetary easing is not seen as an imminent step that BoJ would take.
