10/20, 8:18 PM (Source: TeleTrader)
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BoJ: Monetary and fiscal mix to boost growth

Bank of Japan Governor Haruhiko Kuroda said on Sunday that a "mix of monetary easing, flexible fiscal spending and structural reforms to raise the country’s long-term growth potential could be effective in stimulating the economy." He also noted that it’s important to "examine financial functioning and make appropriate policy responses so that the cost of monetary easing is reduced."

"Financial system stability should be addressed primarily through macro-prudential steps. But no prudential tool-kit is perfect," Kuroda stated during a seminar on long-term policy challenges for central banks. He stressed BoJ is "equipped with unconventional tool kits, so there is no need to be too pessimistic about the effectiveness of the monetary policy."

Earlier this week Kuroda stated BoJ will maintain borrowing costs at very low levels until spring and is determined to expand the monetary base by quantitative easing with yield curve control "for as long as necessary" to get inflation back up to target 2%.

Breaking the News / TF