Oct 13, 2020 - Economy & Business

Global central bankers set the stage for more easy policy

Data: BofA Global Research; Chart: Axios Visuals
Data: BofA Global Research; Chart: Axios Visuals

Bank of Japan governor Haruhiko Kuroda became the latest central bank chief to tip his hat to the possibility of easier monetary policy in recent weeks, saying during the Institute of International Finance's annual meeting Monday that the BOJ would "not hesitate to take additional easing measures as necessary."

What they're saying: "The BOJ hasn't run out of policy tools," Kuroda added. "We have a lot of policy tools to counter [damage from the pandemic]. We are flexible, innovative when considering measures to take."

Around the world: The Bank of England on Monday moved a step closer to adopting negative interest rates, writing to banks to ask them how ready they would be for such a move.

  • The Fed's Charles Evans said last week that there was “still quite a bit of flexibility in the asset purchase side right now, and it allows us flexibility to also provide more accommodation if that's necessary."
  • European Central Bank president Christine Lagarde warned at the end of September in a meeting with the European Parliament’s economic and monetary affairs committee that the central bank “continues to stand ready to adjust all of its instruments, as appropriate.”
Go deeper