BOJ Kuroda FT interview
The Bank of Japan’s Governor Kuroda gave interview to the Financial Times. Here are the essential points of his comments:
- Japan is half way with the “three arrows” of Abenomics: inflation rose to 0.9%, but there’s still “a long way to go” to the 2% target.
- There are different views in the BOJ monetary policy Committee on the extent of quantitative easing: a few members think that “even in 2 years’ time, even with this QE, consumer price inflation may not reach 2%”.
- Kuroda supports the idea of the consumption tax hikes. In economic growth slows down in response, the government and BOJ “can do something to ameliorate the situation”.
The FT concludes that it sounds like “the MPC should do even more”.