BOJ's Sakurai: Plenty of room to buy more ETFs, deepen negative rates, increase purchases

In an exclusive interview with Reuters, Bank of Japan’s (BOJ) board member Sakurai expressed her view on the monetary policy, while outrightly denying the need to adopt ‘helicopter money’.

Key Quotes:

“There is plenty of room to buy more etfs, deepen negative interest rates and increase asset purchases”

“No need to remove BOJ’s base money target or change basic policy framework at Sept policy review”

“BOJ may make some technical changes to its policy tools at Sept policy review”

“BOJ may consider ways to change shape of JGB yield curve in Sept review as yield curve has flattened more than expected”

“BOJ's decision on if to ease in Sept and beyond will depend largely on how board analyses effects of negative rates”

“Impossible for BOJ to adopt 'helicopter money' under Japan’s law”

“BOJ buying foreign bonds isn't an option now as would be tantamount to fx intervention”

“Strong yen pushes down prices but BOJ won't target fx rates in guiding monetary policy”

“BOJ shouldn't ease recklessly, must look carefully at effects of past policy decisions”

“BOJ should always think about developing new policy tools”

“BOJ unlikely to change 2 pct inflation target, won't do anything seen as retreat from easy policy in Sept policy review”