- Haruhiko Kuroda, BoJ Governor
The Bank of Japan kept its monetary policy stimulus unchanged in line with expectations, while analysts believe further actions might be needed in the coming months on the back of low consumer inflation rate. The central bank maintained its pledge to expand the monetary base at an annual rate of 80 trillion yen through purchases of government bonds and risky assets. The central bank is under pressure to reach its goal of reflating the economy, targeting the consumer inflation at 2% by early 2016. While the BoJ said consumer price increases will slow to about zero percent "for the time being," the central bank stuck to its opinion that the Japanese economy will continue recover at a moderate pace. Governor Haruhiko Kuroda expects benefits of lower oil prices will help the nation's economy, boosting growth and inflation in the long run. However, Kuroda also highlighted the flipside of weaker energy prices, saying that core consumer prices might fall slightly year-over –year, but these developments should not trigger concerns. What is more important, in Kuroda's view, is the broad price trend, where there is no big change.
The BoJ has kept policy intact since expanding its massive stimulus programme in October last year to prevent sharply falling oil prices, and a subsequent decline in inflation, from delaying a sustained end to deflation.
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