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Bank of Japan says inflation expectations are somewhat weak

Staff writer ▼ | January 25, 2016
Bank of Japan Governor Haruhiko Kuroda said he would take into account various factors in deciding whether additional monetary easing was necessary.
Haruhiko Kuroda
Asia   Governor Haruhiko Kuroda in Davos
"Japan's underlying price trend isn't deteriorating. But some indicators on inflation expectations have been somewhat weak," Kuroda told reporters at the World Economic Forum in Davos, adding that he would carefully watch how recent global market turbulence affects Japan's economy and prices.

"We won't hesitate adjusting policy, including easing policy, if necessary to achieve our 2 percent price target," he said. Kuroda, however, didn't comment on whether the BOJ would ease policy at next week's rate review.

In a panel session he attended before speaking to reporters, Kuroda said there was no limitation to the BOJ's policy tools if it were to expand monetary stimulus.

"I don't think there is any technical limitation to further strengthen our quantitative and qualitative easing if necessary to achieve our 2 pct target."

Asked by reporters whether he felt additional monetary easing was necessary at this stage, Kuroda said: "We're looking at various data and analyzing them. I can't say anything more, such as whether we would do anything or not."


 

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