BOJ's Kuroda Vows to "Persistently" Continue Monetary Easing

Politics Economy

New York, April 22 (Jiji Press)--Bank of Japan Governor Haruhiko Kuroda on Friday reiterated the central bank's intention to maintain its current monetary policy, saying in a speech at Columbia University that the bank will "persistently continue with the current monetary easing centered on yield curve control."

"By doing so, it (the BOJ) will firmly support the economic recovery from the pandemic and encourage the formation of a virtuous cycle in which both wages and prices rise moderately," Kuroda said, noting that "recovery in aggregate demand in Japan has been slower than in the United States."

In the speech, Kuroda said that there is "still a long way to go" to achieve the BOJ's inflation target of 2 pct "in a stable manner."

While the United States is seeing inflation stemming from demand and wage growth, Japan's inflation is being driven by higher energy prices, he pointed out.

"In Japan, it is unlikely that the current rise in commodity prices due to supply factors will immediately lead to a sustained rise in wages and prices," the BOJ chief said.

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