"...it is possible for the government and the BOJ to strike some kind of accord and foreign bond purchases could be considered as a monetary policy tool"
- Japan's new Economics Minister Seiji Maehara
The Bank of Japan is now facing a stronger pressure to take bold actions in order to boost economic growth, as political leadership in the country changed. Japan's new Economics Minister Seiji Maehara sees buying foreign bonds by the BoJ as one of the method of future monetary easing. The government wants to quickly achieve an inflation target of 1 per cent, which it considers to be a key to price stability.
"What I have been trying to say is that if we realize that the steps the BOJ is taking are not enough, it is possible for the government and the BOJ to strike some kind of accord and foreign bond purchases could be considered as a monetary policy tool," said Japan's new Economics Minister Seiji Maehara.
"In theory, I think we don't need it but as a political judgment I can accept an increase of the monthly bond purchases by 200 billion yen ($2.5 billion) as the government requested," said Miyako Suda, a board member of the Bank of Japan.
The Nikkei 225 Stock Average gained 0.44 per cent, or 38.71 points, to 8,863.30. The broader Topix Index edged higher 0.24 per cent, or 1.75, to 737.13.
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