TOKYO, March 4 Buying longer-dated Japanese
government bonds in huge amounts would be the most natural way
to ease monetary policy due to the huge size of the debt market,
Haruhiko Kuroda, the government's nominee for next central bank
governor, said on Monday.
"Among various assets, the Japanese government bond market
is the biggest in Japan. If the BOJ were to ease policy, it
would therefore be most natural for it to increase government
debt purchases and target longer-dated bonds," Kuroda said in a
confirmation hearing in the lower house of parliament.
He also said that achieving the BOJ's 2 percent inflation
target in two years would be desirable but added that it was
inappropriate to set a rigid time frame because prices are
affected by various factors such as commodities.