BOJ’s Kuroda: Japan Financial System Remains Stable

Bank of Japan Governor Haruhiko Kuroda said on Monday that while Japan’s financial system remained stable, the central bank will monitor market developments in the wake of Greece’s referendum that voted against European bailout terms.

He also reiterated that the BOJ will maintain its massive monetary stimulus for as long as needed to achieve its 2 percent inflation target.  “Japan’s economy is expected to continue recovering moderately,” he said in a speech at a quarterly meeting of the central bank’s regional branch managers.

The BOJ has stood pat on monetary policy since expanding stimulus in October last year to prevent slumping oil prices, and a subsequent slowdown in inflation, from delaying a sustained end to nearly two decades of deflation.