In his speech before the parliament, the Bank of Japan (BOJ) Governor Kuroda further noted: “I never said BOJ can cut rates unlimitedly and that BOJ has unlimited ammunition to ease “.
Additional Comments:
Very few at BOJ believe BOJ cannot deepen negative rates beyond -0.1%.
It’s possible for BOJ to deepen negative rates beyond -0.1%.
BOJ must weigh the benefits, costs of policy in mulling further easing.
There are still JGBs left in markets BOJ can buy.
There is plenty of room to deepen negative rates.
BOJ has various means to ease policy, can combine them or deploy an enhanced version of them.
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