Still room for BoJ easing: Bernanke

Ben Bernanke has advised Japan’s Prime Minister on monetary easing in tandem with fiscal expansion.

Former Federal Reserve Chairman Ben Bernanke told Prime Minister Shinzo Abe that the Bank of Japan still has scope for further monetary easing, in tandem with the government’s fiscal expansion, Cabinet Secretary Yoshihide Suga said on Tuesday.

“Mr Bernanke said Japan should raise nominal growth by fiscal policy coordinated with monetary policy steps,” Mr Suga said at a regular press conference Tuesday afternoon.

“He pointed out that there are various monetary policy measures left for the BOJ to take,” Mr Suga added.

Earlier in the day, the visiting former Fed chief met with Mr Abe and discussed the global economy, including what Japan needs to do to get out of deflation and achieve sustainable growth, Mr Suga said.

- Dow Jones newswires