TOKYO: Bank of Japan head Haruhiko Kuroda defended its decision to press ahead with the country’s ultra-loose monetary policy on Friday, even as the US Federal Reserve and European Central Bank tighten their policies.
After a two-day meeting, the BoJ said it would retain its current framework, pointing to a disappointing lack of progress towards its longstanding 2.0 per cent inflation target.
It lowered its expectations for inflation this year to 0.5-1.0pc, from around 1.0pc previously tipped.
Speaking after the meeting, Kuroda said a persistent “deflation mind” was plaguing Japanese boardrooms and families, keeping the target he had hoped to reach by 2015 a distant goal.
“I believe the momentum remains intact for us to achieve the 2pc price (inflation) target,” he said.
Published in Dawn, June 16th, 2018
For more live updates, follow Dawn.com's official news Instagram account @dawn.today