Bank of Japan Governor Haruhiko Kuroda stated it had been difficult to achieve balanced economic growth with financial policy alone, adding that G20 nations shared the vista fiscal and structural policies should also play a vital role in boosting growth.
But he shrugged from the view that global policymakers were becoming more and more worried about the increasing price of prolonged ultra-loose financial policies, signaling that central banks still had the ammunition left to stimulate the economy.
“I do not think there is a powerful feeling shared among (G20 nations) that financial policy was reaching its boundaries or that the over-reliance upon financial policy was causing big problems,” he told a news conference on Friday.
Kuroda stated he told a finance leaders’ meeting of Number of 20 major economies the BOJ was prepared to expand financial stimulus if required to attain its 2 percent inflation target.
Japanese Finance Minister Taro Aso also cautioned policymakers against being excessively pessimistic concerning the global economy, despite the fact that various risks loomed around the outlook.
“What’s important would be to find out the cause of the issue and take appropriate measures,” Aso told exactly the same news conference, pointing to concerns voiced by a few policymakers on sluggish global trade.
“When the slowdown in trade is a result of broadening protectionist sentiment, this is a reason to be concerned so policymakers should act to get rid of barriers against free trade,” he added.
Aso stated some big Japanese companies might wish to shift their Countries in europe from London with other metropolitan areas as Britain proceeds toward exiting the Eu.
That could pressure smaller sized Japanese firms operating in great britan to follow along with suit, he stated, adding that policymakers in Tokyo, japan may urge domestic banks to make sure they assist such firms in funding such move.
“It’s uncertain how (Brexit) will really unfold but we are able to say some Japanese firms may shift their headquarters from London,” Aso stated.