Further comments by BOJ deputy governor, Masayoshi Amamiya
- Won't rule out any policy option if the BOJ were to ease further
- Could opt to combine easing options or use them individually if need be
- Or can use modified version of existing tools
- Says BOJ will mull the cost-benefit of easing options when deciding
If major central banks around the world are introducing fresh stimulus, the worry for the BOJ is that if they don't take a similar stance, the yen would strengthen and derail the "momentum" in achieving their 2% inflation target.
However, with negative rates, QQE and yield curve control in place already, the central bank is lacking more straightforward ammunition to fight back and it'll be interesting to see what other options they have in their toolkit.
