Business
By Tetsushi Kajimoto and Manoj Kumar
GREATER NOIDA, India, May 2 (Reuters) - The Japanese central bank will monitor whether its monetary easing could have an unintended spillover effect on emerging economies, Bank of Japan Governor Haruhiko Kuroda said on Thursday.
However, he said he saw no sign of asset bubbles emerging.
Under Kuroda, the BOJ stunned financial markets last month by pledging to inject about $1.4 trillion into the economy to end nearly two decades of stagnation and hit a 2 percent inflation target in roughly two years.
Some policymakers in Asia fear strong capital flows coming from easier monetary policy in advanced economies may result in disruptive bubbles and currency appreciation, reducing the competitive edge of Asian exports. Kuroda played down those fears.
"So far I have not much observed that big asset bubbles are occurring due to capital inflows," Kuroda told reporters on the sidelines of the Asian Development Bank's annual meeting, held in India.
The BOJ is not alone in flooding its economy with cheap funds to try to boost borrowing and spending. Others have also engaged in quantitative easing, led by the U.S. Federal Reserve, the Bank of England and, to some extent, the European Central Bank.
(Additional reporting by Rajesh Kumar Singh; Writing by Malini Menon; Editing by Frank Jack Daniel and Stephen Nisbet)
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