TOKYO -- Bank of Japan Gov. Haruhiko Kuroda suggested on May 9 that he would consider additional monetary easing if momentum toward the country's price stabilization goal is lost.
"We will swiftly consider further monetary easing if momentum toward the price stabilization goal is lost under various circumstances," Kuroda told the House of Councillors Committee on Financial Affairs, after expressing concerns over the fate of the ongoing trade war between the United States and China.
Kuroda's comment came in response to a question by independent legislator Yoshimi Watanabe.
The central bank chief pointed out that concerns over trade negotiations between the United States and China are spreading across Asian countries. Unless such concerns are dispelled, "it could not only lead to immediate downward pressure on trade activities in those countries, but also have fairly broad repercussions on the global economy by way of destabilization of corporate sentiment and financial markets," he said.
Kuroda added that he would "continue to closely examine the movements," indicating that he would move ahead with further credit easing depending on the circumstances.
(Japanese original by Yusuke Matsukura, Business News Department)