Expanding its loan program to the market is one option the BOJ has at its disposal if the economy worsens, according to an interview with BOJ Governor Shirakawa in today’s Asahi newspaper. The BOJ will keep rates near zero until price stabilization is in sight, he says.
More of the same will not spark much confidence in the market that the BOJ has the problem under control. USD/JPY continues to ease, now at 81.45.