BOJ Does Not Consider Tapering Appropriate: Kuroda

Economy Politics

Tokyo, May 13 (Jiji Press)--Bank of Japan Governor Haruhiko Kuroda on Friday denied a view that the central bank will tighten its superloose monetary policy in step with U.S. and European peers.

The BOJ "does not consider that scaling back the current monetary easing is appropriate," he said in a speech at a conference organized by Jiji Press-affiliated Research Institute of Japan.

Kuroda said that the BOJ considers it appropriate to maintain its current policy of guiding the yield on the benchmark 10-year Japanese government bond issue to around zero pct with wiggle room of 0.25 percentage point.

In a question-and-answer session after the speech, Kuroda said it is appropriate for the BOJ to maintain its current forward guidance, which hints at the possibility of lowering interest rates in the future.

Referring to former Prime Minister Shinzo Abe's recent remark that the BOJ is a government subsidiary, Kuroda said the central bank's independence in conducting monetary policy and business operations is guaranteed by law.

[Copyright The Jiji Press, Ltd.]

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