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«AgroInvest» — News — BoJ to maintain QE until 2% inflation achieved, Kuroda says

BoJ to maintain QE until 2% inflation achieved, Kuroda says

2014-01-03 15:44:31

Bank of Japan Governor Haruhiko Kuroda said the central bank will not stop its quantitative and qualitative monetary easing in two years, but will maintain the same until the 2 percent inflation is attained, the Yomiuri Shimbun reported on Thursday.

"We won't end or downsize [the easy money policy] in two years," Kuroda told the Japanese daily in an interview. "Until 2 percent inflation is reached and secured, we'll keep the current policy."

"The limit of two years is our initial intent and expectation," he said.

Initially, the bank had announced that it expects inflation to reach its 2 percent target in two years. In November, Japan's inflation accelerated to its fastest level since April 2008. Prices, excluding those of fresh food, rose 1.2 percent annually in November.

Regarding the consumption tax hike in April, Kuroda said he is less concerned about the impact. He expects growth to improve soon after a slump in the April - June period.

 

 

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