Prime Minister Yoshihide Suga and Bank of Japan Gov. Haruhiko Kuroda agreed Wednesday to remain in close contact and coordinate policy in their first meeting since the prime minister took office last week.
Kuroda told reporters following the meeting at the Prime Minister’s Office that there is “no change at all” to the BOJ’s stance on the accord reached with the administration of Suga’s predecessor, Shinzo Abe, in January 2013 that pledged monetary easing in pursuit of a 2 percent inflation target.
“I agreed with the prime minister that the government and the BOJ will continue to communicate sufficiently and proceed with policies in firm coordination,” Kuroda said.
Suga has promised to stick with Abe’s Abenomics policy mix that entails bold monetary easing by the BOJ, fiscal stimulus and structural reforms to spur growth.
“The government and the BOJ have fulfillled their respective roles, which turned out to be a plus for the economy,” Kuroda said of the 2013 accord. “We will continue to guide our policy based on this view.”
Asked by a reporter about the yen’s rise against the U.S. dollar over the weekend, Kuroda said it is preferable that currency moves be stable and reflect fundamental economic conditions.
With its 2 percent inflation target seen as increasingly unattainable, the BOJ maintained its ultraeasy monetary policy as well as a series of steps for companies to cope with the coronavirus pandemic at a policy-setting meeting Thursday, a day after Suga took office and launched his Cabinet.