Bank of Japan Gov. Haruhiko Kuroda said Thursday the central bank has “many ways” to further ease monetary policy to achieve its 2 percent inflation target, pledging to take any steps needed to reach the goal.
“If the 2 percent inflation target is not met in the way we have expected, we would adjust monetary policy accordingly” to achieve it, Kuroda said in a question-and-answer session after delivering a speech in Tokyo.
“There are many ways, measures and options if necessary to further ease monetary conditions,” Kuroda said, dismissing the view that the central bank’s options are limited. He did not elaborate on possible steps.
In the BOJ’s economic outlook report released in April 2013, it projected that consumer prices would roughly reach the price stability target of 2 percent around the middle of the period from fiscal 2014 to fiscal 2016.
To conquer more than a decade of deflation, the BOJ embarked on an aggressive monetary easing policy just over a year ago to stoke 2 percent inflation within two years by doubling Japan’s monetary base.
“What I would like to emphasize here is our strong commitment to achieving the price stability target of 2 percent,” Kuroda said. “If Japan’s economy follows a path toward the 2 percent target as we have projected, we will steadily pursue” the current monetary easing policy.