Bank of Japan Governor Haruhiko Kuroda said Monday the central bank has not set a time limit on its ultraloose monetary policy, hinting that large-scale easing may be kept intact beyond its current policy effect projection up to the end of 2014.
While the BOJ gives figures for the outstanding amounts of the monetary base and government bond holdings as of the end of this year and next year, “These are projected amounts under the current policy and do not suggest in any way a time limit of the policy conduct,” Kuroda said in his speech in Nagoya.
He vowed that the BOJ will continue with its large-scale monetary policy to achieve an inflation target of 2 percent “as long as it is necessary for maintaining the target in a stable manner.”
In his speech, he also expressed confidence the bank is on course to achieve the price target to overcome deflation, saying its policy “has been steadily exerting its intended effects,” citing improvements in the real economy, financial markets and people’s expectations.
“Japan’s economy has been following the path toward achieving the 2 percent price stability target, as expected,” he said, expressing the view that consumer prices are likely to reach around the target of 2 percent toward the latter half of the bank’s three-year projection period up to fiscal 2015.
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