BOJ has various means to ease more if needed: bank official

Tokyo

THE Bank of Japan is ready to ramp up stimulus, including through a combination of various steps, if the economy loses momentum on hitting its 2 per cent inflation target, a senior central bank official said on Tuesday.

Eiji Maeda, the BOJ's executive director overseeing monetary policy, added that any further step must take into account the impact it has not just on the economy but on the banking system. "If the economy's momentum for achieving our price target is threatened, we are ready to ease monetary policy as necessary," Mr Maeda told parliament. The BOJ has various means available to ease, such as cutting interest rates, boosting asset purchases and accelerating the pace of money printing, he said.

"We'll continue to take steps as needed, including a combination of them, with an eye on their effects and side-effects." At a two-day rate review ending on Thursday, the BOJ is widely expected to keep monetary policy steady even as its latest prediction will likely show inflation missing its target through the fiscal year that ends in March 2022. REUTERS