Japan is likely to continue its ultra-easy monetary policy despite recent rises in prices, according to testimony by Bank of Japan Gov. Haruhiko Kuroda and Prime Minister Fumio Kishida.
“The Bank of Japan will support the economy, which is still on the way to recover from the pandemic, by patiently continuing powerful monetary easing,” Kuroda told a parliamentary committee Monday.
Kishida, who attended the same meeting, said the government isn’t considering to amend its accord with the BOJ, under which the central bank promises to take an easy policy to achieve 2% inflation.
Consumer prices rose over 2% from a year earlier in April due mainly to higher energy prices. Kuroda has repeatedly said such an inflation rate isn’t sustainable.