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BOJ may suffer losses in event it exits easy policy, says governor Kuroda -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO A man in a mask walks by the Bank of Japan headquarters during the COVID-19 outbreak that erupted in Tokyo, Japan on May 22, 2020. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters), The Bank of Japan may temporarily lose its large asset holdings if they end their ultra-loose monetary policies, Haruhikokuroda announced on Wednesday.

Kuroda explained that because the BOJ is holding a lot of government bonds it means it would take some time to decrease its total size, if they decide to abandon ultra-easy policy.

The BOJ may temporarily suffer from losses on its balance sheets because it takes so long to adjust its balance sheet. The possibility is possible, but we cannot rule it out. However, we can’t be certain that this will happen,” he said to parliament.

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