Kuroda hints at shift in thinking on monetary policy's power

Tokyo

ALMOST three years after taking the helm at Japan's central bank, governor Haruhiko Kuroda has hinted that his view on the power of monetary policy has shifted, after an unprecedented stimulus programme failed to achieve his inflation target.

"It's not that the monetary base alone will pull up inflation or inflation expectations promptly," Mr Kuroda said in Parliament on Tuesday. "We aim to raise prices through an increase in inflation expectations and a tighter gap in supply and demand under QQE," he said, referring to qualitative and quantitative easing measures.