Bank of Japan (BOJ) Governor Kuroda, while speaking in Parliament on Thursday, said the central bank would consider ramping up stimulus effort if the momentum to achieve the 2% inflation goal is threatened.
- When inflation does hit 2 pct in future, raising interest BOJ pays on excess reserves will be among policy options.
- Even if BOJ’s annual bond-buying pace slows to around 30 trillion yen, that won’t cause huge trouble.
- Don’t think Japan is implementing the modern monetary theory.
- It is wrong to assume big fiscal spending, backed by the underwriting of debt by the central bank, will never cause hyper-inflation.
- BOJ’s board will, of course, debate exiting yield curve control when inflation approaches 2 pct.
- Given inflation still short of our target, we will continue powerful monetary easing under yield curve control.
- Will swiftly ponder additional easing if the momentum for hitting price goal threatened.
- If US-China trade friction escalates, it will have a quite broad impact on the global economy.