Investing.com - The negative interest rate policy adopted in January will not make it more difficult to buy a necessary amount of Japanese government bonds, Bank of Japan Governor Haruhiko Kuroda said Tuesday.
"The negative interest rate policy isn't impeding BoJ purchases of Japanese government bonds and it will not make it difficult for the BoJ to buy bonds from now on," he told lawmakers.
The BoJ board in January introduced the negative interest rate policy, which applies a -0.1% rate to some excess reserves held by financial institutions, not only to intensify the easy policy but also to push down the entire yield curve.
Recent under subscription at BoJ JGB buying operations are increasing speculation that the BoJ would have trouble buying necessary JGBs in the future.
The BoJ's two-day policy-setting meeting is scheduled for April 27-28.