BOJ's 2% inflation target has resulted in Japan's economy no longer in deflation, Kuroda says

FILE PHOTO: A man wearing a protective mask walks past the headquarters of the Bank of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020.REUTERS/Kim Kyung-Hoon
FILE PHOTO: A man wearing a protective mask walks past the headquarters of the Bank of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020.REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) - The Bank of Japan's 2% inflation target has pulled Japan's economy out of deflation, Governor Haruhiko Kuroda said on Tuesday, adding that this was not a mistaken policy.

"As a result of the Bank of Japan's policy of seeking to achieve its 2% price target, we are no longer in a deflationary situation," Kuroda said, answering questions after a speech on climate change policy.

Despite having failed to meet its 2% inflation target for nearly a decade, Kuroda said the central bank's policy has been in a right course.

"Corporate profits and growth rates have much improved, compared to the era of deflation," he said.

(Reporting by Takashi Umekawa; Editing by William Mallard)

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