BOJ’s Kuroda: Businesses Should Stop Hoarding Cash

Bank of Japan chief Haruhiko Kuroda urged business leaders to use profits more productively, saying hoarding cash will become costly as the central bank stamps out deflation.

Companies could boost investment in facilities and jobs, taking advantage of a weaker yen, Kuroda said today in a speech in Nagoya. At the same time, the BOJ will continue to spur price gains, adjusting its unprecedented easing policy as needed to achieve its inflation goal, he said.

Japanese companies are headed toward their highest profits ever as a weaker yen resulting from the BOJ’s stimulus boosts Toyota Motor Corp. and other exporters. Japan Inc. holds near-record cash while capital spending in the second quarter was more than 50 percent lower than a peak in the first three months of 2007.

Bloomberg

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