BOJ ‘will work for market stability’


Bank of Japan Gov. Haruhiko Kuroda said Monday the central bank will take necessary steps to stabilize markets jolted by the coronavirus outbreak, bolstering speculation about coordinated global policy action.

Kuroda’s comments, made in an emergency statement just days after a similar move by U.S. Federal Reserve Chair Jerome Powell, were welcomed by markets as a signal that the world’s biggest central banks were mustering a coordinated policy response to the crisis.

Kuroda said financial markets have made “unstable movements” on heightening uncertainty over the impact on the economy from the epidemic.

“The BOJ will monitor developments carefully, and strive to stabilize markets and offer sufficient liquidity via market operations and asset purchases,” he said. The statement’s language suggested the BOJ will make full use of its existing tools to flood markets with funds, before pondering additional monetary easing steps.