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BOJ's Kuroda says it will continue with ultra-easy policy

Reuters TOKYO | Updated on January 11, 2018 Published on May 17, 2017

The BOJ has kept the monetary policy steady since revamping its policy framework in September last year. File Photo of Bank of Japan in Tokyo.

'The Japanese economy is recovering and prices will rise but inflation is far from the desired target'

Bank of Japan’s Governor Haruhiko Kuroda said he told Japanese Prime Minister Shinzo Abe at a meeting on Wednesday that the central bank will continue its ultra-easy monetary policy.

“I told the prime minister that Japan's economy is steadily recovering and will continue to grow above its potential," Kuroda told reporters after the meeting.

“Under these conditions, prices will rise. But inflation is still far from our (2 per cent) target. I told the prime minister that we will continue with our monetary easing programme,” he added.

In his first such meeting since January, Kuroda said he did not receive any particular request from Abe on monetary policy.

Asked whether they talked about the chance of his reappointment after his current five-year term ends in April next year, Kuroda said it was not his place to discuss such issues.

This meeting is held every few months, to exchange views on the global and Japanese economies.

The BOJ has kept the monetary policy steady since revamping its policy framework in September last year to one better suited for a long-term battle against deflation.

With the economy recovering steadily, many analysts expect the BOJ's next move to be a reduction of monetary stimulus rather than an expansion.

Published on May 17, 2017
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