Bank of Japan Gov. Haruhiko Kuroda on Wednesday stressed his confidence in the country’s economic outlook despite negative effects of the April 1 consumption tax hike to 8 percent from 5 percent.
“Japan’s economy is expected to continue its recovery, weathering the temporary slowdown in economic growth due to the consumption tax hike,” Kuroda said in a speech in New York.
The central bank will make adjustments “without hesitation” if it judges it necessary to take such action in order to ensure that its 2 percent inflation target is attained, he said.
The Japanese economy is expected to continue expanding faster than its potential growth rate because the virtuous cycle from income to spending is going on, Kuroda said, projecting that Japan will swing back to positive growth in July-September.
via Japan News
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