Friday, October 11, 2013
Monetary Easing Developments 'Encouraging': BOJ Gov Kuroda
WASHINGTON (Nikkei)--Japan's monetary easing policy is beginning to have an effect, though difficulties in ending deflation remain, Bank of Japan Gov. Haruhiko Kuroda told the International Council Meeting of the Bretton Woods Committee. The meeting was held in Washington on Friday morning, Japan time.
"The largest problem for Japan's economy is that prices will not increase even if the level of economic activity rises," he said. But Kuroda indicated his confidence that the BOJ's monetary easing policy introduced in April will help kick-start inflation, saying "developments thus far have been encouraging."
He stressed that the greatest challenge will be in raising inflation expectations among companies and individuals. "This new policy aimed at increasing inflation to the global standard of 2% by working directly on inflation expectations." He said various surveys have confirmed a rise in inflation expectations six months into the BOJ's monetary easing program.
(The Nikkei, Oct. 11 evening edition)