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"We will do whatever we can to achieve the 2% price target at the earliest time possible"
- Haruhiko Kuroda, the Bank of Japan Governor
Haruhiko Kuroda stepped in as a new governor of the Bank of Japan on Thursday. He pledged to launch full-scale efforts to end decades of deflation in the world's third largest economy and claimed his confidence in reaching a 2% inflation target, rebutting doubters, who expect his efforts will fail, as he prepares to strengthen monetary stimulus. Already before introducing any bold measures, Kuroda's anti-deflation campaign came under criticism, reflecting concerns over whether monetary policy is capable of lifting Japan out of economic stagnation or not. The new governor also assured that there are no sign of an asset bubble and that the BoJ can bring forward open-ended asset purchases.
"We will do whatever we can to achieve the 2% price target at the earliest time possible," Kuroda said yesterday in his inaugural press conference after taking the helm of the BOJ this week.
In a separate report, the Ministry of Finance said that Japan's trade deficit narrowed from its record pace in the previous month, amid hopes that a weaker currency will boost exports. The merchandise trade balance stood at a deficit of ¥777.5 billion ($8.1 billion) in January, compared to ¥1.630 trillion a month earlier. Despite the improvement it is the eighth straight monthly deficit.