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.
