Economy close to 2% inflation target: BOJ

January 27, 2018

London- Bank of Japan Governor Haruhiko Kuroda said Friday that the Japanese economy is "finally close" to achieving the central bank's inflation target of 2 percent.

"There are many factors which made achieving the 2 percent inflation target or price stability target so difficult and time-consuming," Kuroda said at a panel discussion during the World Economic Forum in Davos, Switzerland. "But I think we are finally close to the target."

Kuroda said that he expects the Japanese economy to continue expanding gradually.

He expressed confidence about achieving the BOJ's target, citing factors such as pickups in medium- to long-term inflation expectations.

Kuroda noted that after protracted deflation, people in Japan have firm belief that prices and wages will not rise. It is "not so easy to eradicate" the deflationary mindset, he said.

He emphasized that the BOJ will continue its large-scale monetary easing policy in order to achieve the 2 percent price growth target. Jiji Press