• Bank of Japan Governor Kuroda: There are limits to what BOJ can do in the sense it cannot underwrite debt due to legal constraints

Market news

5 September 2016

Bank of Japan Governor Kuroda: There are limits to what BOJ can do in the sense it cannot underwrite debt due to legal constraints

  • Don't share view that monetary policy is reaching its limits

  • Even within current framework there is ample room for further easing

  • First issue to analyze is what factors have hampered achievement of price target

  • What we should bear in mind when conducting monetary policy is not its limit but comparison between its benefits and costs

  • Negative rates have had impact on mkt liquidity, banks' profits, so need to assess this policy

  • Given we have been implementing large-scale monetary easing, any additional easing entails costs

  • We should not hesitate to go ahead with monetary easing as long as it's necessary for Japan's economy as a whole

*via forexlive

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