BOJ's Kuroda: Ready To Cut Rates Deeper Into Negative Territory

By Sara SjolinMarketsMarketWatch Pulse

Bank of Japan Governor Haruhiko Kuroda on Monday reaffirmed his pledge to whatever it takes to boost growth and inflation, including taking interest rates further into negative territory, according to media reports. In a speech in Osaka, the central bank boss expressed concerns over the persistently low level of inflation in Japan and said he'd use all necessary tools to get inflation back to the 2% target. That includes cutting interest rates deeper below zero as well as keeping a target for long-term interest rates, reports said. "There can be cases where such powerful monetary easing is needed, depending on developments in economic activity and prices as well as financial market conditions," Kuroda said according to Japan Times. "The bank stands ready to use every possible policy tool, if it judges that necessary, to achieve its objectives," he added. The yen was shrugging off the easing comments, with the dollar buying �100.50, down from �101.02 late Friday in New York.

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