MNI POLICY: BOJ Has No Set Ideas on Policy Review: Kuroda

The Bank of Japan is open to all ideas coming out of the ongoing policy reviews, Governor Haruhiko Kuroda said Thursday, refusing to discuss any thinking ahead of the March release, although he did say the bank continued to monitor the cumulative effects of the current easy policy ahead of any decisions on the need for further sustainable easing.

Kuroda told reporters following the BOJ's latest policy decision that there were currently no firm proposals for possible policy moves, such as widening the range of 10-year policy interest rate, although he acknowledged the issue could be discussed in March.

He confirmed that the BOJ is still seeking measures that will restrict the side-effects of easy policy, ensure future sustainable easy policy. "I cannot say the results of assessment," Kuroda said, adding that the BOJ through the comprehensive assessment in September 2016 has shared the view that excessive drop in longer-end JGB yields has negative impact on pension funds and life insurance firms.

Kuroda, however, added that the BOJ needs to keep yield curve at low levels as the virus continues to weigh on the economy, although he was certain the financial environment remained accommodative, with the lending facilities put in place by the BOJ and the government exercising their intended effects.

BIDEN IMPACT

Kuroda also said that the BOJ continues to monitor the economic policy of the U.S. under incoming U.S. President Joe Biden as it has an impact impact on financial markets and the economy across the globe. Kuroda noted keeping a watch on a possible rise in US interest rates, which in turn will strengthen the dollar.