Bank of Japan Gov. Haruhiko Kuroda on Monday dismissed views that the central bank has already exhausted its policy options, saying there is "ample room" for additional monetary easing to achieve the BOJ's 2 percent inflation target.
Kuroda signaled that the bank believes taking interest rates further into negative territory is one option, although he warned that depending too much on such a policy could fan fears about the future of the financial sector and dampen public confidence.
"It is often argued that there is a limit to monetary easing, but I do not share such a view," Kuroda said in a speech in Tokyo, adding, "Needless to say, there is still ample room for further cuts in the negative interest rate and for an increase in the quantity dimension."