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Thursday, July 21, 2016, 17:24

BOJ rules out 'helicopter money'

By Reuters
BOJ rules out 'helicopter money'
Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a press conference at its headquarter in Tokyo, capital of Japan, on Oct 7, 2014. ( Photo X inhua / Stringer)

LONDON - Bank of Japan Governor Haruhiko Kuroda has ruled out the idea of using "helicopter money" to stimulate Japan's economy and said the central bank already has measures to ease policy further if necessary, in a BBC radio interview broadcast on Thursday.

Japanese markets have seen speculation this month that the government will resort to using what's called "helicopter money", where a central bank directly finances budget stimulus through programs such as perpetual bonds.

Kuroda said Japan had benefited from a clear separation between fiscal and monetary institutions over the years.

"I don't think at this stage we should abandon this instutional setting. No need and no possibility for helicopter money," Kuroda told a BBC radio documentary about how far monetary policy can be eased.

"We have very powerful policy framework, and I don't think there's any significant limitation of further easing of monetary conditions in Japan, if necessary."

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