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Bank of Japan's Kuroda says no constraints on asset purchases

Published 04/19/2016, 11:50 PM
Updated 04/19/2016, 11:51 PM
© Reuters.  BoJ Kuroda says more easing possible

Investing.com - Bank of Japan Governor Haruhiko Kuroda said Wednesday the central bank does not face constraints on its asset purchases for the time being while there is also scope for pushing the interest on excess cash parked by banks further into negative territory.

He told the Lower House Financial Affairs Committee that it is "not appropriate" to assume that the board will consider easing at its next meeting on April 27-28 amid growing downside risks to global growth.

"There is no technical limit to our asset purchases for the time being. The timing of hitting the limit will come in the distant future."

The BoJ now expects 2% inflation will be achieved "around" the first half of fiscal 2017, much later than its initial estimate of about two years from April 2013 when it launched aggressive easing. Many economists are skeptical about the latest timing due to weak energy prices and a global economic slowdown.

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