TOKYO- Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank was ready to take “appropriate action without hesitation” with a close eye on how market volatility triggered by the coronavirus outbreak could affect the economy.
But Kuroda stopped short of making any direct reference to the BOJ’s readiness to ramp up stimulus, saying the central bank will continue to use market operations and existing asset-buying programs to pump out liquidity and stabilize markets.
“Uncertainty over Japan’s economic outlook is heightening. Investor sentiment is deteriorating somewhat, with market moves unstable,” Kuroda told parliament.
“Markets remain jittery, so we’ll take appropriate action without hesitation in line with the guidance we laid out last week,” he said.
Kuroda last week issued an emergency statement saying that the BOJ will offer sufficient liquidity via market operations and asset purchases to stabilize markets.
The statement’s language suggested the BOJ would make full use of its existing tools to flood markets with funds, before pondering additional monetary easing steps. — Reuters
