Bank of Japan Deputy Gov. Masayoshi Amamiya said Thursday the central bank is prepared to take additional monetary easing measures as a precaution, if necessary, after the U.S. Federal Reserve cut its interest rates the previous day.
The U.S. central bank on Wednesday lowered the federal funds rate for the first time since December 2008 by 0.25 percentage point, meaning the cost of some borrowing will now float somewhere between 2 percent to 2.25 percent. The Fed cited uncertainties over the global economic outlook amid trade tensions with China as reasons for the cut.
"The bank is no different from other major central banks, in that it is prepared to take, if necessary, policy responses in order to prevent the risks from materializing, while closely monitoring them," Amamiya said in a speech to business leaders in Kagoshima.