The Bank of Japan may have to pursue its aggressive monetary policy easing for “some time” to fully vanquish deflation, BoJ Governor Haruhiko Kuroda said on Saturday.
Speaking at a global central banking conference here, Kuroda said the central bank’s efforts to overcome deflation by stimulating Japan’s economy with large-scale asset purchases was proving effective.
He added, however, that the public was not yet convinced Japan’s central bank would hit its 2 percent inflation target. Creating that expectation was necessary to get firms to raise wages – a key step in Japan’s long war with deflation, he said.
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