BoJ Chief Says Monetary Policy Measures Need To Be Nimble
The monetary policy stimulus of the Bank of Japan needs to be nimble in making effective responses to counter economic shocks, Governor Haruhiko Kuroda said Thursday.
Kuroda noted that prolonged low interest rates have a negative impact on financial institutions’ profits, and purchases of various assets such as JGBs and ETFs affect the market functioning.
The governor said the bank will adopt a forward-looking perspective of how to achieve stability in economic activity and prices by pursuing further effective monetary easing while mitigating side effects.
At the December meeting, the policy board said it is set to assess the sustainability of monetary easing policy as consumer prices are expected to remain under downward pressure for a prolonged period due to the Covid-19 impact.