Kuroda says BOJ will pursue appropriate yield curve to hit price goal
Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan, September 21, 2016. REUTERS/Toru Hanai
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
By Leika Kihara
TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank will pursue the most appropriate yield curve to achieve its 2 percent inflation target.
He also said the central bank is ready to ease policy further by cutting its short- and long-term interest rate targets, or expanding risky asset purchases.
If necessary, the BOJ can also choose to expand the monetary base faster, Kuroda said.
"Our new framework centered on yield curve control can respond to (economic) situations more flexibly compared with our past framework. As a result, our policies become more sustainable," Kuroda said in a speech at an annual meeting of securities firms.
Kuroda said he did not see signs of excessive risk-taking or overheating in financial activity as a result of the central bank's ultra-loose monetary policy.
"At present, we don't see any big problem in Japan's financial system stability," he said.
At its rate review last week, the BOJ switched its policy target to interest rates from the pace of money printing, after years of massive asset purchases failed to jolt the economy out of decades-long stagnation.
Under a new "yield curve control" (YCC) framework, the BOJ pledged to keep the 10-year bond yield around zero percent. It also maintained a policy of charging a 0.1 percent interest on a portion of excess reserves financial institutions park with the central bank.
(Editing by Chris Gallagher; Editing by Simon Cameron-Moore)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Turkish-backed rebels advance in northern Syria - Turkish army
- Exclusive - ChemChina ready to offer EU extra remedies to clear $43 billion Syngenta deal: source
- Twelve killed in attack in northeast Kenya: media
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!