Kuroda: External factors impact exports, sentiment

Tuesday, 15. October 2019 03:14

The Bank of Japan will maintain borrowing costs at very low levels at least until spring and it is determined to expand the monetary base by quantitative easing with yield curve control "for as long as necessary" to get inflation back up to target 2% in a stable manner, Governor Haruhiko Kuroda said. He pointed to the effect of the global economic slowdown on production and exports as well as business sentiment.

However, in the view of the top rate-setter, moderate growth as trend has been kept. He stressed more attention should be paid to risks of a weakening in the path of prices to stability. Inflation is currently near 0.5% and it is seen gradually advancing to reach the objective, underpinned by the positive readings after the closure of the output gap as well as the expectations among consumers, he claimed.

BoJ won't hesitate to turn to more easing if the momentum is lagging, Kuroda reiterated.

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