Bank of Japan Governor Kuroda spoke on Monday in a speech delivered to the business lobby Keidanren.
Speech by Governor KURODA at the Meeting of Councillors of Keidanren (Toward Achieving the Price Stability Target in a Sustainable and Stable Manner, Accompanied by Wage Increases)
Kuroda’s key remarks once again reiterated his view that ultra-easy monetary policy would be sustained. Kuroda said that the widening of the tolerance band within which the 10-year JGB would be allowed to fluctuate, to +/-0.5% from +/- 0.25% previously, was aimed at improving market function.
“This is definitely not a step towards an exit”
the BOJ will maintain “utmost support” for the economy by keeping accommodative financial conditions in place.
“The bank will aim to achieve the price stability target in a sustainable and stable manner, accompanied by wage increases, by continuing with monetary easing under the framework of yield curve control.”
“Labour market conditions in Japan are projected to tighten further and firms’ price- and wage-setting behaviour is also likely to change.”
“We are approaching a critical juncture in breaking out of the prolonged period of low inflation and low growth since the collapse of the bubble economy.”