Huge purchases of longer-dated Japanese government bonds is a natural way to ease monetary policy, but central bankers must monitor the side-effects, Haruhiko Kuroda, the government’s nominee to be the next Bank of Japan governor, said on Monday.
Kuroda said the size and type of assets the BOJ now buys is not enough to achieve its 2 percent inflation target, which he said the central bank would strive to hit within two years.
Prime Minister Shinzo Abe nominated Kuroda, president of the Asian Development Bank and an advocate of aggressive monetary easing, to become the new governor in a push for bolder efforts to end nearly two decades of deflation. His nomination is likely to be approved by parliament.
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