Bank of Japan Gov. Haruhiko Kuroda stressed Friday that there is no need to change the central bank’s outlook for the Japanese economy after a sharp contraction of the country’s gross domestic product in April-June.
The GDP tumble in the first quarter of fiscal 2014 reflected a pullback in demand after a surge ahead of the consumption tax hike from 5 percent to 8 percent on April 1, Kuroda told reporters after attending a financial meeting in Jackson Hole, Wyoming, earlier in the day.
The Japanese economy “will likely start to recover” in the current July-September quarter, Kuroda said. “The underlying trend on consumption is solid,” he said, adding that corporate earnings are robust as the impact of the tax hike is waning.