The Governor of the Japanese Central Bank Haruhiko Kuroda stressed that he was determined to maintain a massive program of incentives, although he was optimistic about achieving the 2% inflation target. Haruhiko Kuroda said the Japanese economy will continue to grow moderately, as rising household incomes lead to a gradual increase in consumption.
“With productivity improvements, medium to long-term inflation expectations are improving, focusing on the 2% target”, said Haruhiko Kuroda during the traditional quarterly meeting of the central bank with its regional managers.
The regulator will maintain its policy of quantitative easing until a steady and sustainable targeting of the Bank’s target is seen.
The Governor of the Japanese Central Bank described the economy as “expanding” or “moderately expanding” for six of the country’s regions, which is a sign of confidence in strengthening the recovery.
The latest report, however, states that some companies complain that labor shortages are damaging to their businesses.
Japan’s economy grew 1.6% yoy in the October-December 2017, accounting for the eighth consecutive quarter of growth supported by strong global demand and rising capital expenditures. However, the core consumer inflation was only 1% in February, as the slowdown in wage growth prevents consumers from increasing their costs.
The Japanese parliament recently approved the re-appointment of Haruhiko Kuroda as Governor of the Japanese Central Bank, indicating that the institution would continue its super-liberal monetary policy. The banker, who was the head of the Asian Development Bank, took office five years ago with a promise to pull the world’s third largest economy out of the spiral of deflation.