Kuroda Remains Wary Over Deeper Negative Rates Like Lagarde

BOJ opts instead to buy up to 12 trillion yen of ETFs
Offers new loan program, more J-REIT, corporate-bond purchases

Outside the Bank of Japan (BOJ) headquarters in Tokyo, Japan on March 16.Photographer: Kiyoshi Ota/Bloomberg

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By Toru Fujioka and Sumio Ito

March 16, 2020 at 5:35 AM UTC

Updated on

March 16, 2020 at 2:29 PM UTC

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Bank of Japan Governor Haruhiko Kuroda’s actions once again showed his wariness over taking interest rates further below zero, despite yet another wave of hefty cuts from global central banks in response to the coronavirus pandemic.

Like European Central Bank chief Christine Lagarde last Thursday, Kuroda opted for more asset purchases rather than rely on the biggest tool at the BOJ’s disposal: its short-term rate.