The Bank of Japan's aggressive monetary easing steps are working to achieve an exit from more than a decade of deflation, BOJ Gov. Haruhiko Kuroda said Friday, while vowing to avoid volatility in long-term interest rates.
"What is most important is to influence the real economy through various channels and bring a virtuous circle in three fields — output, income and spending," he said in a speech in Tokyo. "In such a circle, we are aiming for prices to rise gradually. It can be realized and we are on course to realize it."
The BOJ's monetary easing steps, including doubling the monetary base within two years and boosting bond purchases introduced in April, are based on the view that they are "necessary and sufficient" to achieve a 2 percent inflation target in about two years, Kuroda said.