Bank of Japan Gov. Haruhiko Kuroda expects consumer inflation to accelerate to around 1% in the first half of next year as the economy recovers to pre-coronavirus levels, voicing hope for a consumption-driven recovery.
But with inflation still short of its 2% target, the BOJ will maintain its "powerful" monetary easing and stand ready to ramp up stimulus, even as other central banks head for an exit from crisis-mode policies, Kuroda said on Monday.
"We expect consumer inflation to gradually accelerate to around 1% at about the middle of next year as the output gap turns positive," he said in a speech to business leaders in Nagoya, central Japan.