BoJ’s Kuroda calls for fiscal, monetary policy mix to spur growth

“If the government saw the need to use fiscal policy (to support growth), a mix of fiscal and monetary policies would have a bigger impact than deploying fiscal and monetary steps separately, ” Koroda told reporters.

NAGOYA: Bank of Japan (BoJ) governor Haruhiko Kuroda said a mix of fiscal and monetary stimulus would give a bigger boost to the economy than taking fiscal and monetary steps individually, signalling that the government could play a bigger role in helping spur growth.

But he said the BoJ would not time any easing steps with the government’s decision to ramp up spending, stressing that keeping current ultra-low interest rates alone would enhance the effect of fiscal policy.