BoJ's Kuroda says extremely low rates likely to remain in 2020Christian Fernsby ▼ |
Japan Bank of Japan Governor Haruhiko Kuroda
Japan's extremely low interest rates are likely to remain at the current levels for an extended period, beyond spring 2020, given the uncertainties surrounding economic activity and prices, Bank of Japan Governor Haruhiko Kuroda said Friday.
The central bank will hold rates unchanged, taking into account uncertainties regarding economic activity and prices including developments in overseas economies and the effects of the scheduled consumption tax hike, he added.
Nonetheless, Kuroda said there was no need to be pessimistic about the current situation.
The BoJ governor observed that the momentum toward achieving the price stability target has been maintained. The bank forecast annual inflation to increase gradually toward 2%, although this will still take time, Kuroda noted.
He also stressed that developments in overseas economies and sustainability of domestic demand are factors that influence Japan's economic outlook.
BoJ does not consider that overseas economies will continue to deteriorate all the way. However, Kuroda said it is necessary to maintain firm domestic demand until overseas economies pick up. ■
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