The BOJ is ready to increase stimulus
- Asian Market
- 6 months ago
The Bank of Japan is ready to increase stimulus, including through a combination of various steps, should the economy lose its current momentum as it heads to its 2% inflation target.
The Bank’s executive director, Eiji Maeda announced that any further step must take into account the impact it has not just on the economy but on the banking system.
“If the economy’s momentum for achieving our price target is threatened, we are ready to ease monetary policy as necessary.”
“The BOJ has actively taken various unconventional steps. We’ll continue to take steps as needed, including a combination of them, with an eye on their effects and side-effects.”
The BOJ has various means available to ease, such as cutting interest rates, boosting asset purchases and accelerating the pace of money printing, he said.
At a two-day rate review ending this Thursday, the BOJ is widely expected to keep monetary policy steady even as its latest prediction will likely show inflation missing its target through the fiscal year that ends in March 2022.
Source: Smart Trend Team