Bank of Japan board members forecasting an end to more than a decade of deflation may need to add to an already unprecedented monetary stimulus plan should consumer prices fail to align with their projections by October.
The Bank of Japan maintained its unprecedented plan to boost money supply at a policy meeting today, and predicted inflation will almost match its target in two years even after a report highlighted deflation’s grip.
Haruhiko Kuroda yesterday followed in the footsteps of Ben S. Bernanke and Mario Draghi as he swung the Bank of Japan from incremental moves to unprecedented stimulus in his first policy meeting as governor.
Bank of Japan Governor Haruhiko Kuroda gave himself two years to do “whatever it takes” to end deflation and revive the world’s third-largest economy. He may have less than half that time to produce results.
Bank of Japan Governor Haruhiko Kuroda began his onslaught to end two decades of economic stagnation and 15 years of deflation as the central bank pledged unprecedented easing, driving the yen's biggest slide since 2011.
Haruhiko Kuroda will have limited options for aggressive easing if he’s confirmed as central bank governor as more Japanese government bond purchases heighten the risk of a market bubble, a former BOJ policy board member said.
Governor Masaaki Shirakawa expanded the Bank of Japan’s assets by 50 percent, introduced an inflation target and safeguarded his nation’s banking system from shocks. Yet when he announced he was leaving three weeks early, stocks soared to a four-year high.
Bank of Japan Governor Haruhiko Kuroda said he’s confident in achieving a 2 percent inflation target, rebutting doubters who predict his efforts will fail as he prepares to strengthen monetary stimulus.
Former Bank of Japan Deputy Governor Kazumasa Iwata, an advocate of expanded stimulus, joined economists predicting the bank’s new chief Haruhiko Kuroda will fail to meet his deadline for a price target.