Monday, March 11, 2013
DJ: Will Do Whatever It Takes to Defeat Deflation, Says BOJ Gov Nominee Kuroda
TOKYO--The government's nominee for the next head of the Bank of Japan, Haruhiko Kuroda, said Monday he would do whatever it takes to defeat 15 years of declining prices and achieve a 2.0% inflation target agreed upon with the government in January.
"Since monetary easing actions so far haven't been sufficient, (I) will take every measure possible to achieve a 2.0% target if approved as governor," Mr. Kuroda said at a confirmation hearing to a committee of the upper house of parliament.
While he stressed that further easing action is necessary, he was cautious about the idea of scrapping interest paid on excess reserves that commercial banks deposit at the central bank.
"There are pros and cons" to this option, he said, adding that he would like to debate the subject at the central bank's policy board if he is approved.