Regulatory policy

BOJ could suffer losses if policy ease exits, says Governor Kuroda By Reuters

© Reuters. FILE PHOTO: A man wearing a protective mask walks past the Bank of Japan headquarters amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan May 22, 2020. REUTERS/Kim Kyung- Hoon

TOKYO (Reuters) – The Bank of Japan could temporarily suffer losses on its huge assets if it ends its ultra-loose monetary policy, Governor Haruhiko Kuroda said on Wednesday.

The BOJ holds a huge amount of government bonds, which means downsizing will take a long time if it decides to exit super-easy politics in the future, Kuroda said.

“As the BOJ takes a long time to adjust its balance sheet, it could temporarily incur losses (on its balance sheet). We cannot rule out this possibility. But we also cannot say with certainty that this will actually happen,” he told parliament. .

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