Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan, July 29, 2016.
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Bank of Japan (BoJ) chief Haruhiko Kuroda has insisted he has plenty of ammunition left to fire up the Japanese economy in a robust defence of the Bank’s twin policies of negative interest rates and quantitative easing.
(Corrects 5th paragraph to show dollar, not yen, gain) * Dollar/yen slips following 4 percent rise * BOJ’s Kuroda gives no clear hint on imminent easing * USA jobs data doesn’t rule out Fed rate hike hopes * Sterling hits 7-week high after services PMI By Jemima Kelly LONDON, Sept 5 (Reuters) – The dollar fell against the yen on Monday, after the head of the Bank of Japan disappointed those investors who had expected a clear signal that monetary policy would be eased further this month.
However, Kuroda acknowledged that the negative interest rate policy has dented the profitability of financial and pension institutions.
Sources have told Reuters the BOJ will consider making some modifications to its policy framework and debate some of the unintended consequences of its ultra-loose policy.
Kuroda said he does not share a growing market view that monetary policy has reached its limit, saying that the key would be to weigh the costs and benefits of each policy option. “That said, we should not hesitate to go ahead with (additional easing) as long as it is necessary for Japan’s economy as a whole”.
“Governor Kuroda doesn’t seem to be done with easing monetary policy yet”, said PhillipCapital market analyst Nathan Sage. The BOJ plans a comprehensive policy review later this month. Economists polled by Reuters had expected payrolls to rise by 180,000. It is expected to leave the cash rate as is after cutting in August to a record low of 1.5 per cent.
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Facing stubbornly weak prices, the BOJ has pushed back the timing of its inflation goal several times since it implemented aggressive policy easing measures in 2013 under Kuroda.
