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25 Aug 2014
Kuroda: BoJ only 'halfway' to beat deflation
FXStreet (Bali) - Bank of Japan Governor Haruhiko Kuroda, who attended the Jackson Hole Economic Policy Symposium in Jackson Hole, Wyoming, over the weekend, said - via Reuters - that the Central Bank may have to ease policy for 'some time' to slay deflation.
"We have committed ourselves to continuing the increasingly accommodative stance until the 2 percent inflation target is met and maintained in a sustainable manner. That means inflation expectations are anchored to 2 percent and that may take some more time" Kuroda said.
Kuroda suggested that they might be just 'halfway' through to beat deflation, by noting that public inflation expectations, while gradually increasing, are still int he 1% vicinity as opposed to a desired 2% mark.
With regards to Japan's labour market, Kuroda said that is showing "significant improvement," although, as Reuters notes, quoting Kuroda, "it still faces challenges including a large share of part-time workers in the service sector."
"The Bank of Japan's price stability target can serve as a benchmark for wage setting. Once the bank has succeeded in firmly anchoring (inflation) expectations at 2 percent this could provide the basis on which wage negotiations are conducted" Kurda said.
"We have committed ourselves to continuing the increasingly accommodative stance until the 2 percent inflation target is met and maintained in a sustainable manner. That means inflation expectations are anchored to 2 percent and that may take some more time" Kuroda said.
Kuroda suggested that they might be just 'halfway' through to beat deflation, by noting that public inflation expectations, while gradually increasing, are still int he 1% vicinity as opposed to a desired 2% mark.
With regards to Japan's labour market, Kuroda said that is showing "significant improvement," although, as Reuters notes, quoting Kuroda, "it still faces challenges including a large share of part-time workers in the service sector."
"The Bank of Japan's price stability target can serve as a benchmark for wage setting. Once the bank has succeeded in firmly anchoring (inflation) expectations at 2 percent this could provide the basis on which wage negotiations are conducted" Kurda said.