- Haruhiko Kuroda, BOJ Governor
A recent report from the Bank of Japan showed that the nation's monetary base soared 45.6% in May from the same period a year earlier, hitting 224.37 trillion yen, as central bank continues to inject a huge amount of cash into the domestic financial system in a bid to boost growth and inflation. The report also showed that the average daily balance of liquidity injected by the central bank, including in circulation as well as the balance of current account deposits held by private banks, posted gains for the 25th straight month and refreshed a record high. Japan's monetary base has been increasing since the central bank started purchasing government bonds and other financial instruments under its unprecedented stimulus programme. Kuroda aims to double the monetary base next year.
While Shinzo Abe's Abenomics are working and supporting the world's third largest economy, sceptics including the IMF urged the central bank to consider tapering its stimulus programme. To address this statement, Kuroda warned against prematurely exit strategy, pointing out that BoJ's priority to keep flooding financial markets with cash to meet its inflation target. Kuroda also stressed out the government should map out a credible growth strategy and conduct reforms to assure a long-term growth potential, as constantly ageing population and stronger growth have already led to labour shortages.
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