Kuroda Not Concerned By Sharp Yen Depreciation

Bank of Japan Governor Haruhiko Kuroda offered an upbeat view of the economy but sought to douse market talk the central bank may soon consider raising interest rates, vowing instead to keep policy loose to achieve the BOJ’s 2 percent inflation goal.

Kuroda also said he did not see recent yen falls as a problem for Japan’s economy, saying that a weak currency helps accelerate inflation by boosting import costs and in so doing raise inflation expectations – a crucial element in the BOJ’s plan to beat economic stagnation.

“We are still distant from our 2 percent inflation target. It’s therefore appropriate to continue with powerful monetary easing,” Kuroda told a news conference on Tuesday.

Reuters

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