Kuroda Backs Sales-Tax Increase Before Panels Weigh Impact

Bank of Japan Governor Haruhiko Kuroda said Japan’s economy is strong enough to withstand a planned sales-tax increase, backing the measure before panels meet next week to study the impact on growth.

The economy won’t lose speed if the sales tax is raised as planned, Kuroda told the Mainichi newspaper in an interview published today. If a higher levy or changing conditions overseas heighten the risk of a slowdown, the central bank “won’t hesitate” to add to its unprecedented easing policy, Kuroda said, according to the report.