BoJ Governor Says Monetary Policy Not Limited

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.

via Mainichi

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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