The central bank chief said he expects to reach 2 percent inflation in fiscal 2019, warning that “risks are skewed to the downside.”
Japanese monetary policy must remain loose until the world’s third-largest economy achieves a higher inflation rate, Bank of Japan Governor Haruhiko Kuroda said.
“In order to reach 2 percent inflation target, I think the Bank of Japan must continue very strong accommodative monetary policy for some time,” Kuroda told CNBC’s Sara Eisen this weekend. “It’s necessary.”
His comments will be closely watched ahead of the central bank’s two-day policy meeting this Thursday and Friday. In March, the BOJ said it would keep the short-term policy rate unchanged at negative 0.1 percent and the 10-year yield target around 0 percent.
