No signs of excesses building in markets: BOJ

Reuters | Published: October 14, 2017 10:50:14 | Updated: October 25, 2017 04:33:08


File Photo (Reuters)

Bank of Japan Governor Haruhiko Kuroda said on Friday he did not see any signs of bubbles or excesses building up in US, European and Japanese markets as a result of heavy money printing by the BOJ.

Kuroda also dismissed some analysts’ criticism that the BOJ’s purchases of exchange-traded funds (ETF) were distorting financial markets or dominating Japan’s stock market.

 “I don’t think we have a very big share” of Japan’s total stock market capitalisation, he told reporters after attending the Group of 20 finance leaders’ gathering.

The International Monetary Fund painted a rosy picture of the global economy in its World Economic Outlook earlier this week, but warned that prolonged easy monetary policy could be sowing the seeds of excessive risk-taking.

Kuroda said that while policymakers should not be complacent about their economies, he did not see huge risks materialising as a result of their policies.

Although major central banks deployed massive stimulus programmes to battle the global financial crisis, they have always scrutinised whether their policies were causing excessive risk-taking, he said.

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