Homepage
PR Newswire
17-10-2014, 11:13 PM
BoJ says inflation moving towards target
DOW JONES NEWSWIRES OCTOBER 17, 2014 9:00PM
Bank of Japan Governor Haruhiko Kuroda said on Friday that the central bank is "steadily" on track to achieve its inflation target of 2 per cent, suggesting he feels little pressure to ramp up stimulus efforts despite a sluggish economy and a tumbling Tokyo stock market.
"A positive growth mechanism... is firmly in place both in the corporate and household sectors," Mr Kuroda said in a speech at a meeting sponsored by Community Bank Shinyo Kumiai, a group of credit unions. "Our country's economy remains on a moderate recovery trend."
Mr Kuroda added that the rate of inflation, as measured by consumer prices excluding fresh food costs, will hover around levels above 1 per cent "for some time" before rising toward 2 per cent, countering the popular market view that it will soon drop below 1 per cent.
While Mr Kuroda signaled his confidence in the price outlook, he left the timing vague of when exactly he thinks the inflation rate will reach 2 per cent. He only said there is a "high possibility" of the core inflation rate rising to that level around the middle of the period between April 2014 and March 2017.
DOW JONES NEWSWIRES OCTOBER 17, 2014 9:00PM
Bank of Japan Governor Haruhiko Kuroda said on Friday that the central bank is "steadily" on track to achieve its inflation target of 2 per cent, suggesting he feels little pressure to ramp up stimulus efforts despite a sluggish economy and a tumbling Tokyo stock market.
"A positive growth mechanism... is firmly in place both in the corporate and household sectors," Mr Kuroda said in a speech at a meeting sponsored by Community Bank Shinyo Kumiai, a group of credit unions. "Our country's economy remains on a moderate recovery trend."
Mr Kuroda added that the rate of inflation, as measured by consumer prices excluding fresh food costs, will hover around levels above 1 per cent "for some time" before rising toward 2 per cent, countering the popular market view that it will soon drop below 1 per cent.
While Mr Kuroda signaled his confidence in the price outlook, he left the timing vague of when exactly he thinks the inflation rate will reach 2 per cent. He only said there is a "high possibility" of the core inflation rate rising to that level around the middle of the period between April 2014 and March 2017.