Market Players Expecting BOJ Governor Kuroda to Be Retained (News)
Tokyo, May 18 (Jiji Press)—Some in the financial markets expect that Bank of Japan Governor Kuroda Haruhiko, who has led the country's fight against deflation, will be retained with less than a year to go before the expiration of his term in April 2018.
In April 2013, soon after he took office, the Kuroda-led BOJ launched its "quantitative and qualitative" monetary easing regime, which featured massive purchases of Japanese government bonds by the central bank from the market in order to achieve year-on-year consumer inflation of 2%.
The bank took further steps later, such as a negative rate policy that set an interest rate of -0.1% on part of financial institutions' current account deposits at the BOJ, and yield curve control, including guiding 10-year JGB yields to around 0%.
These measures are believed to have helped the Japanese economy recover to a certain extent.
But the 2% consumer price growth seems to be still far away, with the central bank having repeatedly pushed back the timing of achieving the target. The bank now expects the country's consumer inflation to reach that level around fiscal 2018.[Copyright The Jiji Press, Ltd.]