On the 12th Bank of Japan Governor Haruhiko Kuroda announced that he would maintain monetary easing. It is said to be to support the Japanese economy, which is recovering from the novel coronavirus, and to ensure that the price target is met.
At the annual meeting of the Institute of International Finance (IIF) in Washington, DC, Governor Kuroda said, “We must continue monetary easing until we reach the 2% inflation target in a sustained and stable manner.” He said that Japan needs to raise wages a lot more to achieve his goal of price stability.
Kuroda reiterated his view that inflation in Japan differs from that seen in the economies of the United States and the euro zone. The rapid depreciation of the yen is partly responsible for accelerating price increases in Japan. Steady price growth must be accompanied by wage growth, he said, calling for caution in the outlook for consumer prices.
He said the depreciation of the yen is affecting some sectors of the Japanese economy, but said it could have a positive macroeconomic effect overall.
He reiterated that the September foreign exchange market intervention was appropriate and said the BOJ will continue to monitor the impact of the exchange rate on the economy.
Original title:Kuroda vows to continue to settle in a still recovering economy (1)(extract),Latest news from the IMF: the BOJ will continue to ease inflation, Kuroda says(extract)
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