Bank of Japan Governor Haruhiko Kuroda said he will keep stimulus in place and conduct further unlimited bond purchases to keep bond yields within the central bank’s target range if necessary.
“We will use that tool, of course, if we get into the same situation,” Kuroda said in response to questions in parliament Wednesday following the first such operation since 2018 on Monday.
“It was an unusual situation when yields climbed somewhat rapidly, influenced by rising yields overseas.”
Kuroda’s comments come as a global tide of upward pressure on yields keeps the rate on 10-year Japanese government debt close to a 0.25% ceiling set by the BOJ as part of its stimulus measures.
Kuroda has repeatedly ruled out the possibility of near-term policy adjustments. He reiterated the point Wednesday, saying it’s best to persistently continue with monetary easing given.
