Bank of Japan Gov. Haruhiko Kuroda has said the BOJ will not buy bonds just to keep down the government's debt-servicing costs after it achieves its goal of stable 2 percent inflation.
"If we reach our target and prices are stable, we have no intention of moving away from our goal and implementing policy to reduce debt-servicing costs," Kuroda said in the Diet Wednesday, in response to a question from opposition lawmaker and former economy minister Seiji Maehara, who claimed "the BOJ could be smacked around and told to do something" if yields rise.
Unprecedented monetary easing has helped suppress yields on 10-year government bonds to the lowest in the world even as inflation has accelerated to its fastest pace since 2008.
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