Bank of Japan Gov. Haruhiko Kuroda has said the BOJ will not buy bonds just to keep down the government¡¯s debt-servicing costs after it achieves its goal of stable 2 percent inflation.
¡°If we reach our target and prices are stable, we have no intention of moving away from our goal and implementing policy to reduce debt-servicing costs,¡± Kuroda said in the Diet Wednesday, in response to a question from opposition lawmaker and former economy minister Seiji Maehara, who claimed ¡°the BOJ could be smacked around and told to do something¡± if yields rise.
Unprecedented monetary easing has helped suppress yields on 10-year government bonds to the lowest in the world even as inflation has accelerated to its fastest pace since 2008.
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