Bank of Japan Kuroda Confident on Reaching 2 Percent Inflation

The Bank of Japan will keep its highly expansionary monetary policy in place until inflation hits and stabilizes at its 2 percent target, the central bank’s governor said on Thursday, adding it would take more easing measures if price rises flagged.

“We intend to achieve the 2 percent inflation target and maintain that in a stable manner,” Haruhiko Kuroda told the Financial Times, suggesting ultra-easy money could remain in place well beyond the two-year time frame the BoJ has given itself to reach the goal.

“It’s not good just to touch on 2 percent inflation and then go down to 1 percent or less than 1 percent.”

Reversing years of deflation is a priority for both the bank and the government of Shinzo Abe, the prime minister, who has promoted monetary stimulus as the first “arrow” of his Abenomics campaign to stimulate Japanese growth.

via Kuroda: We will hit 2% inflation and maintain it

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza