BOJ’s Kuroda: Will consider additional easing if the 2 % price goal is threatened

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.

Key quotes

• 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.