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Kuroda Says Not Easy to Dispel Japan's Deflationary Mindset

  • BOJ remains distant from its 2 percent inflation target
  • Japan is pushing on with stimulus as others eye exit

Bank of Japan Governor Haruhiko Kuroda said the central bank can help avoid negative price shocks and achieve its 2 percent inflation target by working on inflation expectations through forward guidance.

“Although there remain issues to be resolved to achieve the price stability target of 2 percent, the environment surrounding prices in Japan has improved steadily compared to five years ago,” Kuroda said in a speech at the University of Zurich’s Swiss Institute of International Studies on Monday. “It is not easy to quickly dispel the deflationary mindset that has formed over the course of 15 years of deflation.”