BOJ chief Kuroda renews inflation pledge at start of 2nd term

April 10, 2018

Tokyo- Bank of Japan Governor Haruhiko Kuroda on Monday started his second term by renewing his commitment to the central bank's target of achieving 2 percent inflation.

"I will make every effort to meet the price target early," Kuroda told a press conference after failing to meet the target during his first five-year term.

Kuroda signaled his readiness to ease the central bank's monetary policy further if a consumption tax increase in October 2019 is projected to have a negative impact on the economy.

"An appropriate and timely monetary policy response will be necessary" in such a situation, he said.

Kuroda is the first BOJ chief to be reappointed in about 60 years. He will continue to work on the inflation target, while also tackling the daunting task of devising a strategy for monetary policy normalization by ending the current massive easing campaign.

Referring to the exit strategy, however, Kuroda said the current situation does not allow the BOJ to discuss its timing and manner.

Earlier on Monday, Kuroda held talks with Prime Minister Shinzo Abe and related ministers, confirming the 2013 policy accord between the bank and the government. Under the accord, the BOJ said it aims to achieve the inflation target as early as possible.

During the meeting, Abe instructed Kuroda to take every possible measure to achieve the target.

There were no specific requests for additional monetary easing, according to Kuroda. Jiji Press