Kuroda hints at rate cut, says more easing possible

Thursday, 19. September 2019 09:24

Bank of Japan Governor Haruhiko Kuroda acknowledged on Thursday after a regular meeting that rate-setters became more inclined to increase monetary stimulus. Speaking at a press conference in Tokyo after measures were held unchanged, he said a further steepening of the yield curve would be "desirable."

The top policymaker said there is room for more easing and indicated that taking the main interest rate deeper into negative territory is possible. In his view, the panel has less maneuvering space than the United States Federal Reserve but more than the European Central Bank. Turning to the scheduled increase in the sales tax, he estimated it wouldn't impact the economy.

The benchmark gauge of borrowing costs is at minus 0.1% and the BoJ targets zero yield on ten-year government bonds.

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