Bank of Japan Governor Haruhiko Kuroda pledged to continue easing until a 2 percent inflation target is reached, in a sign he wants the central bank to strengthen its commitment to ending deflation.
“The 2 percent price stability target has been set by the policy board, and of course, we will work to continue monetary easing until that is realized,” Kuroda said in parliament today.
Investors expect Kuroda, who said this week he wants to reach the inflation target in two years, to add to monetary stimulus at his first policy-setting meeting on April 3-4. Bond yields fell to a 10-year low today as Kuroda says he wants to expand purchases of government debt.
Kuroda’s wording today was stronger than that of BOJ board member Ryuzo Miyao, who has proposed at two meetings this year that the bank continue with its zero-interest rate policy until 2 percent inflation is “in sight.”
Miyao’s proposals were rejected by the other eight board members, including former Governor Masaaki Shirakawa and his two deputies who stepped down March 19.
In the BOJ’s policy statement after its Feb. 13-14 meeting, the central bank said it would ease “as long as it judges it appropriate to continue.”