Kuroda signals no policy shift after inflation hits 41-year high
Bank of Japan Governor Haruhiko Kuroda signalled the hottest inflation since 1981 has no impact on his determination to continue with monetary easing.
“Our hope is that wages start to rise and that could make the 2 per cent inflation target to be met in a stable and sustainable manner,” Kuroda told a panel discussion on Friday (Jan 20) in Davos – his first public comments since data on prices were released earlier in the day. “But we have to wait for some time.”
Kuroda’s remarks reinforce this week’s central-bank pushback against the most intense market speculation for policy adjustments under his decade-long term. Even so, the pressure is likely to remain as investors bet on the likelihood of a new direction after he steps down on April 8.
Kuroda said current inflation is led mainly by import-price increases, and that it’s likely to start cooling from next month. He spoke hours after a government report showed consumer prices excluding fresh food rose 4 per cent – double the BOJ’s 2 per cent inflation target. BLOOMBERG
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