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ECONOMY

BOJ chief Kuroda’s remaining term ticks past 2 years

  • April 9, 2021
  • , Jiji Press , 5:22 p.m.
  • English Press

Tokyo, April 9 (Jiji Press)–Bank of Japan Governor Haruhiko Kuroda now has less than two years before his term expires on April 8, 2023, but the central bank’s inflation target of 2 pct remains far from being achieved.

 

The BOJ is set to release inflation projections for fiscal 2023 in a quarterly report to be adopted at its next policy-setting meeting, on April 26-27.

 

The central bank is expected to estimate growth in consumer prices in the year from April 2023 at around 1.5 pct at the highest.

 

Nonetheless, Kuroda appears adamant about maintaining the 2 pct target, making it inevitable that the bank’s monetary easing policy will be prolonged further.

 

Kuroda is likely to leave the BOJ with the inflation target yet to be attained, leaving to his successor the task of leading the bank to an exit from the massive easing campaign.

 

Amid growing uncertainties over the domestic economy, including a possible fourth wave of coronavirus infections, no path is in sight toward realizing 2 pct inflation.

 

At the previous policy-setting meeting in March, the BOJ reviewed the easing policy to enhance its effects and sustainability. As a result, the bank decided to make its purchases of exchange-traded funds more flexible and expand the range of 10-year government bond yields that it tolerates.

 

Through the policy tweaks, the BOJ believes the 2 pct inflation target can be achieved, however long it takes.

 

Meanwhile, Takahide Kiuchi, executive economist at Nomura Research Institute Ltd. <4307>, said the BOJ should reconsider the easing policy framework if it appears likely to fail to achieve the inflation target during Kuroda’s tenure.

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