Japan's central bank chief signals room to boost stimulus as economic risks rise
In this April 2, 2018, file photo, people enter the Bank of Japan headquarters in Tokyo. A central bank survey released Monday, July 2, 2018 showed Japan's corporate outlook has worsened from three months ago, underlining fears in this export-reliant economy about trade tensions. [Photo:AP]Bank of Japan Governor Haruhiko Kuroda warned of heightening risks to the economic outlook and signalled the central bank's readiness to ramp up stimulus if needed, brushing aside concerns it lacks policy ammunition to stave off another recession.
In a widely expected decision, the BOJ maintained its massive stimulus programme on Thursday and stuck to its view the world's third-largest economy continues to expand moderately.
But Kuroda cautioned of growing risks to Japan's economy due to Sino-U.S. trade tensions and volatile markets, suggesting the central bank's next move could be to ramp up - not whittle down - stimulus.
Despite a common market view the BOJ's policy ammunition is running low, Kuroda said the central bank has room to ease further including by cutting interest rates, ramping up asset buying and accelerating the pace of money printing.