Bank of Japan's Kuroda rules out "helicopter money" - BBC radio

LONDON, July 21 (Reuters) - Bank of Japan Governor Haruhiko Kuroda has ruled out the idea of using “helicopter money” to stimulate Japan’s economy and said the central bank already has measures to ease policy further if necessary, in a BBC radio interview broadcast on Thursday.

Japanese markets have seen speculation this month that the government will resort to using what’s called “helicopter money”, where a central bank directly finances budget stimulus through programmes such as perpetual bonds.

Kuroda said Japan had benefited from a clear separation between fiscal and monetary institutions over the years.

“I don’t think at this stage we should abandon this instutional setting. No need and no possibility for helicopter money,” Kuroda told a BBC radio documentary about how far monetary policy can be eased.

“We have very powerful policy framework, and I don’t think there’s any significant limitation of further easing of monetary conditions in Japan, if necessary.” (Reporting by Andy Bruce; Editing by Douglas Busvine)