TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank will take necessary steps to stabilise markets jolted by the coronavirus outbreak, bolstering speculation about coordinated global policy action.
Crowds wearing protective masks, following an outbreak of the coronavirus, are seen at the Shinagawa station in Tokyo, Japan, March 2, 2020. REUTERS/Athit Perawongmetha
Kuroda’s comments, made in an emergency statement just days after a similar move by 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 stabilise 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.
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