Bank of Japan Governor Haruhiko Kuroda said on Monday that the BOJ will undertake additional easing if downside risks to the economy materialise without elaborating on possible policy responses.
“The risk of global economic deceleration is strengthening. If the global economy worsens sharply, Japan’s economy will be hit by it. We will take additional easy policy if such a risk materialises,” Kuroda told business leaders in a question and answer session.
Kuroda also said rapid movements of foreign exchange rates are undesirable as it creates uncertainty for businesses.
He added that the BOJ continues to carefully monitor currency market developments and their impact on economy and prices.