2016.07.2111:41:00UTC+00Boj Denies the Ongoing Helicopter Money Chatter

Bank of Japan Governor Haruhiko Kuroda doused speculation on the recent chatter surrounding helicopter money to be used, in case the central bank looks to ease further next week.

"Given the current institutional setting, at this stage there is no need and no possibility for helicopter money," Kuroda said in a BBC Radio 4 program that was broadcast Thursday.

“At this moment, the Bank of Japan has three options with quantitative and qualitative easing with negative interest rates. These current policies can be expanded if needed and there are no significant limitations to further monetary stimulus," he added.

Kuroda's comments come ahead of a BoJ policy meeting next week. Prime Minister Shinzo Abe’s government is also preparing a fiscal spending package in an effort to support growth. Currency markets are betting on an aggressive round of stimulus by Tokyo starting at next week's Bank of Japan meeting. Kuroda’s remarks may be greeted with caution.

The Japanese yen strengthened sharply after Kuroda’s comments. The yen surged to as strong as 105.85 yen per dollar, almost 1 percent up on the day. It was also 0.8 percent higher against the euro at 116.78 yen.