BOJ deputy chief says bank poised for further easing measures after Fed rate cut

Source: Xinhua| 2019-08-01 21:33:45|Editor: Wu Qin
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TOKYO, Aug. 1 (Xinhua) -- Following the U.S. Federal Reserve cutting its interest rate a day earlier for the first time in more than a decade, Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya said Thursday the central bank here is poised to rollout further easing measures if necessary.

"The bank is no different from other major central banks, in that it is prepared to take, if necessary, policy responses in order to prevent the risks from materializing, while closely monitoring them," Amamiya told business leaders in a speech in Kagoshima, southwestern Japan.

According to Amamiya, the Fed's widely expected rate cut by 0.25 percentage point was "intended to prevent an actual slowdown in economic activity and inflation and will likely have a positive influence on the Japanese economy."

He said that reciprocally, if the U.S. economy is fortified, then this will benefit the global economy including Japan's.

In terms of the BOJ's preparedness to rollout further easing measures, Amamiya said the central bank had upped its level of alert.

"We've raised the alert level by one notch on the back of uncertainties over the global economy," the deputy chief said.

In response to concerns the BOJ may be running out of ammunition when it comes to the possibility of unleashing further easing measures, Amamiya refuted the notion.

"We have neither run out of policy tools nor have fewer options for further monetary stimulus," he said.