WASHINGTON: Bank of Japan Governor Haruhiko Kuroda said on Saturday there will be no significant changes in the management of the central bank's balance sheet going forward under its new framework.
"From the viewpoint of policymakers, a negative interest rate policy and asset purchases are not mutually exclusive," Kuroda said in a speech at Brookings Institution.
He also played down the idea by some academics that central banks should raise their inflation targets from 2 percent to around 4 percent to address declines in inflation expectations.
"Based on Japan's experience, the argument that a central bank can lift inflation expectations of various entities simply by raising its inflation target seems a bit naive to me."
The BOJ last month shifted its policy target to interest rates from base money, a move some analysts saw as paving a way for a future tapering of the bank's massive balance sheet.
Comments
Comments are closed.