The Bank of Japan has “many options” for additional easing, Governor Haruhiko Kuroda said, emphasizing that the bank would adjust its policy if needed to reach its 2 percent inflation target.
“We have substantially increased our JGB holdings but still it’s about 20 percent of total JGBs outstanding,” Kuroda said in response to questions after a speech in New York, noting that the Bank of England holds roughly 40 percent of government debt. “Our purchases of CP, corporate bonds, ETFs and J-REITs have been quite small compared to the market size.”
Kuroda’s comments come amid increasing signs of doubt at the BOJ that it will achieve its two-year timeframe for the target. A majority of board members think the bank should drop it, according to people familiar with discussions at the BOJ.
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