BoJ Prepared for Fiscal Easing
BoJ Prepared for Fiscal Easing

BoJ Prepared for Fiscal Easing

BoJ Prepared for Fiscal Easing

Bank of Japan Governor Haruhiko Kuroda said Saturday that he won’t hesitate to boost monetary stimulus if needed, reiterating a pledge during an annual policy retreat in Jackson Hole, Wyoming, at which central bankers stressed their need for backup from fiscal policy.
“There is no doubt that there is ample space for additional easing in each of the three dimensions,” Kuroda said, referring to the BoJ’s package of asset buying, monetary-base guidance and negative interest rates. “The bank will carefully consider how to make the best use of the policy scheme in order to achieve the price stability target,” he told the Federal Reserve Bank of Kansas City’s symposium, Kyodo reported.
Central bankers, struggling to spur persistently disappointing growth, gathered in Grand Teton National Park to debate how best to tackle low inflation despite having already cut interest rates to near zero or, in some cases, below zero. They heard Fed Chair Janet Yellen on Friday describe future potential options to jump-start the economy while saying that the case for a US rate hike had strengthened.
Even though the Bank of Japan is currently engaged in a review of its monetary-policy settings, due for completion in September, Kuroda’s comments underline his stance that the exercise won’t mean any reduction in stimulus despite growing doubts about its effectiveness.
“One of the key elements of our policy is to push up inflation expectations to our price stability target and anchor them there,” Kuroda said. “The Bank of Japan will continue to carefully examine risks to activity and prices at each monetary policy meeting and take additional monetary policy measures without hesitation.” The BoJ’s next policy meeting is on Sept. 20 and 21.
Benoit Coeure, European Central Bank executive board member, said during the same panel that his institution may also have to take further monetary measures if governments don’t act to boost long-term growth. “We will fulfill the price stability mandate given to us,” Coeure said. “But if other actors do not take the necessary measures in their policy domains, we may need to dive deeper into our operational framework and strategy to do so.”
While slowing growth and inflation present difficulties for central banks around the industrialized world, the Frankfurt-based ECB has particular cause to urge pro-expansion measures by the 19 nations that use the euro. High unemployment, political spats and banking systems loaded with soured loans are hampering the region’s recovery from a debt crisis that started six years ago.

Short URL : http://goo.gl/QTXVP3
  1. http://goo.gl/LDOKax
  • http://goo.gl/NmJmIa
  • http://goo.gl/bNtSga
  • http://goo.gl/uO01jZ
  • http://goo.gl/BKTd2U

You can also read ...

The treasury department in Washington
Foreign governments pulled back their purchases of longer-term...
Shares of petrochemical companies in Asia slumped on Tuesday, tracking the global equity downturn overnight.
The trade dispute between the world’s two largest economies...
Brazil, India Corporate Debt at Risk of Default
A 200 basis-point increase in interest rates could spark a...
Six people including two former HBOS bankers were jailed last year.
An internal Lloyds Banking Group report written by a former...
China Accuses Trump of Blackmail, Vows Strong Retaliation
China vowed to retaliate after President Donald Trump...
London Metals Cut Losses
London metals edged higher and Shanghai contracts cut early...
BoK Hints at Rate Increase
Bank of Korea Gov. Lee Ju-yeol indicated Tuesday that the bank...
Mario Draghi
Mario Draghi promised that the European Central Bank will take...