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.
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