Kuroda is ready to employ every possible tool to hit price objective
BOJ Governor Haruhiko Kuroda, in his first speech since the major bank’s decision the previous week to overhaul its radical stimulus program, told that Japan’s major financial institution was on the verge of using any available tool to meet its 2% inflation objective.
While the BOJ would be mindful enough of the impact ultra-easy monetary policy could have on banks' revenues, that would not prevent it from expanding stimulus further if required to revive Japan's economy.
On Monday Kuroda told that there’s no better opportunity than now to entirely get out of deflation. From his point of view the limits of monetary policy aren’t effective, to put it mild. He added that when it comes to working out another monetary policy, Japan’s major bank should pursue innovation without hesitation.
The previous week, the BOJ made a steep shift to targeting interest rates on government bonds to meet its elusive inflation objective, after years of massive money printing failed to get the national economy out of decades-long stagnation.