BOJ’s Kuroda: Many Options Available for Easing

The Bank of Japan has “many options” for additional easing, Governor Haruhiko Kuroda said, emphasizing that the bank would adjust its policy if needed to reach its 2 percent inflation target.

“We have substantially increased our JGB holdings but still it’s about 20 percent of total JGBs outstanding,” Kuroda said in response to questions after a speech in New York, noting that the Bank of England holds roughly 40 percent of government debt. “Our purchases of CP, corporate bonds, ETFs and J-REITs have been quite small compared to the market size.”

Kuroda’s comments come amid increasing signs of doubt at the BOJ that it will achieve its two-year timeframe for the target. A majority of board members think the bank should drop it, according to people familiar with discussions at the BOJ.

Bloomberg