BOJ’s Amamiya: Will take appropriate action as needed – Reuters

The Bank of Japan (BOJ) will look at various risks and take appropriate policy action without any preset idea, Deputy Governor Amamiya said on Thursday.  

Amamiya added that rate cuts, increase in asset purchases, acceleration of base money expansion are some of the options available ease policy further, if required.  

Key quotes

• Global economic slowdown affecting Japan’s exports but capex,  domestic demand firm.
• Fed  rate cut a preemptive measure against risk of slowed down in economy, inflation.
• BOJ  must closely watch how overseas risks affect Japan’s economy, prices.
• If US economy on solid footing, that will have positive effect on global economy.
• if overseas uncertainty heightens, that may make firms cautious about spending so need to be vigilant.
• Japan’s economy sustaining mechanism under which positive output gap gradually pushes up wages, inflation.