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The Future of Asia 2012

BOJ To Respond Flexibly To Volatility: Kuroda

Friday, May 24, 2013

TOKYO(Nikkei)--Bank of Japan Gov. Haruhiko Kuroda said Friday that his institution would continue to operate flexibly in the bond market and watch movements carefully.

Speaking at the 19th International Conference on The Future of Asia, Kuroda said, "We will increase our communication with the market." The BOJ chief said he expects to see stable movements in the long-term bond and other markets.

He did not comment on the recent volatility, which on Thursday saw yields on 10-year Japanese government bonds reach 1.0%. Kuroda said Japanese financial institutions as well as markets should promote further growth in the region by providing the necessary funds.

He added that he hopes Japanese financial institutions change their business models to shift Asia's focus from manufacturing to consumption.

"Japanese financial institutions are expected to finance infrastructure projects in Asia," Kuroda said. Japanese bank deposits can be used to fund Asian growth strategies, he said.

The central bank chief stressed the importance of regional cooperation, saying, "Asia's central banks are exchanging opinions."

He said the promotion of bonds denominated in Asian currencies is an example of regional cooperation.

Titles of speakers, names of companies, etc., were correct as of the time when the forum was held.