Kuroda committed to 2% inflation target

March 2, 2018

Tokyo- Bank of Japan Governor Haruhiko Kuroda, who has been nominated by the Japanese government for another five-year term, expressed Friday his commitment to achieving the BOJ's 2 percent inflation target.

"I'm determined to do all I can to add the finishing touch to the ongoing efforts to achieve the 2 pct inflation target," Kuroda said at a hearing on his nomination at the House of Representatives Committee on Rules and Administration, expressing his readiness to maintain existing large-scale monetary easing to overcome deflation.

Market watchers are keeping close tabs on what Kuroda has to say about how the BOJ will normalize its monetary policy, as negative results of existing measures have become more visible, including worsening business conditions for regional banks amid very low interest rates.

The Lower House committee will hold hearings with the candidates for deputy BOJ governors, Waseda University Prof. Masazumi Wakatabe and BOJ Executive Director Masayoshi Amamiya, on Monday.

The House of Councillors, the upper chamber, will hold a hearing with Kuroda on Tuesday and with the two candidates for deputy governors on Wednesday.

The cabinet will appoint the BOJ governor and deputy governors after approval from the upper and lower chambers of parliament. Both chambers are expected to approve the proposed appointments at plenary sessions by March 19, when the terms of the incumbent deputy governors will expire. Jiji Press