- Haruhiko Kuroda, Bank of Japan Governor
Bank of Japan Governor Haruhiko Kuroda said the BoJ should "act decisively" to eradicate deflationary mind-set in Japan, adding to recent comments which underscore the central bank's preparedness to deploy additional stimulus if necessary. The BoJ's task has been complicated by the fact that the world's third biggest economy has been mired in deflation for 15 years. Doubts have been growing recently over Kuroda's pledge to generate 2% inflation after the central bank introduced only modest additional measures in December despite Japan's sluggish growth and obscure price prospects.
Earlier in the week, the Finance Ministry data showed that Japan logged a current account surplus for the 17th straight month in November, providing much needed support for Prime Minister Shinzo Abe's effort to underpin the world's third biggest economy. Japan's current account surplus came in at 1.14 trillion yen in the reported month, up from 440.2 billion yen a year earlier. The surplus was driven by an increase in income from investments abroad by Japanese companies as well as rise in services amid an influx of tourists after the Yen weakened. Services swung into surplus of 61.5 billion yen after being in deficit of 337 billion yen in October. At the same time, in terms of trade Japan continues to run deficits in most months, as exports rise slightly, whereas costs of imports are higher.
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