Japan open to more monetary easing if needed, BOJ chief said

APD NEWS

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Bank of Japan

Governor Haruhiko Kuroda said on Tuesday that the Japanese central bank is open to more monetary easing measures if needed, following remarks last week on considering an "exit strategy" from the easy monetary policy.

Kuroda said at a symposium in Tokyo on Tuesday that the bank is confident of achieving its 2 percent inflation target "sometime in fiscal 2018."

However, asked whether or not the bank will consider expanding easing if it deems the target hard to achieve, the BOJ chief gave an affirmative answer, saying that the bank aims to reach the price target at the earliest possible time.

Government data shows that Japanese economic growth appears to have strengthened momentum at the outset of the year as a relatively weak yen and strong global demand fueled activity in the all-important external sector in 2017. Many analysts expect core consumer prices to head toward 1 percent later this year helped by the strengthening US dollar pushing the yen lower.

In the framework of the new yield curve control (YCC) established last year, the Bank of Japan raised its long-term interest rate to around zero by active asset purchases.

Kuroda told a parliamentary session last week that he would consider asking the central bank to exit from its aggressive monetary easing measures.

Some analysts worry about the sustainability of the BOJ's stimulus program, with the central bank having already gobbled up 40 percent of the Japanese government bond market. And many analysts expect the BOJ's next move to be a withdrawal, not an expansion, of stimulus as the economy shows signs of strength under a rebound in global demand.

The statement Kuroda made has been considered as a shifting in tone from his earlier standing that it was too soon to consider putting an end to the easing measures.

(CGTN)