January 23, 2015 / 11:42 AM / in 4 years

BOJ's Kuroda welcomes ECB easing, relaxed about expected Fed hike

Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo January 21, 2015. REUTERS/Toru Hanai

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Friday he was not worried that diverging monetary policies in the United States and Europe will complicate his efforts to beat deflation at home.

In an interview with Bloomberg TV from the World Economic Forum in Davos, Kuroda welcomed the ECB’s decision to launch a bond-buying programme, following the path of “quantitative easing” pioneered by the BOJ in the early 2000s.

“I don’t think it makes our job more difficult,” Kuroda said.

He noted that the euro had not fallen much against the yen in the wake of the ECB move. It had already weakened a great deal over a long period.

Before the global financial crisis began in 2008, the euro was worth more than 160 yen, he said. It was trading around 118 yen on Friday.

“We welcome this action by the European Central Bank”, because it will eradicate deflation in the currency zone and boost growth, Kuroda said.

“Both of these would be beneficial to the world economy, including the Japanese economy.”

Kuroda was also relaxed about the Federal Reserve, which he said was likely to start raising interest rates “soon”, as markets expect, after it ended the U.S. experiment with quantitative easing.

“That reflects very strong economic growth in the United States”, which was also good for the world economy and Japan, he said.

Writing by William Mallard; Editing by Nick Macfie

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