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Interview

Kuroda says cutting rates 'further into negative' an option

Bank of Japan chief sees 'firm' domestic demand, but warns of trade war headwinds

Bank of Japan Gov. Haruhiko Kuroda said downside risks from the trade war have heightened and he "can't rule out" a further downturn in the global economy. (Photo by Wataru Ito)

TOKYO -- Cutting interest rates "further into the negative zone is always an option" for the Bank of Japan, Gov. Haruhiko Kuroda told Nikkei, as the central bank grows increasingly concerned about mounting downside risks to the global economy from the U.S.-China trade war. He said rate cuts are one of the four options BOJ has presented before.

In its statement after July's policy board meeting, the BOJ had signaled a willingness to consider preemptive easing if necessary. "The Bank will not hesitate to take additional easing measures if there is a greater possibility that the momentum toward achieving the price stability target will be lost," the statement said.

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