Bank of Japan is ready to ease its monetary policy

On Wednesday, a policy board member of the Bank of Japan drew attention to the fact that the country’s number one financial institution is absolutely ready for a decisive move – easing of its monetary policy if needed.

Yutaka Harada in his recent speech to business leaders told that there’re quite evident risks, which could slow down Japan’s economy. Moreover, this might even contribute to further economic downtime in China as well as other emerging economics. Another huge risk to be mentioned is the ongoing impact of American monetary policy on the global financial markets. European debt problems also worsen the overall situation.   

Apparently, if all of these risks come true, the BOJ will have to get down to extra monetary easing without any hesitation.

By the way, Harada has appeared to be amidst those five of nine board members, voting for introducing negative rates, not so long ago, in January, in order to back up the BOJ’s asset purchase program, aimed at buying up to Y80 trillion of government bonds every year. 

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