Kuroda wants to achieve Boj’s 2pc price tar­get in two years

The Pak Banker - - COMPANIES/BOSS -

TOKYO: Haruhiko Kuroda said he wants 2 per­cent in­fla­tion in two years and pledged to buy more government bonds, un­der­scor­ing the new Bank of Ja­pan chief’s ef­forts to ac­cel­er­ate an end to fall­ing prices. “Achiev­ing the 2 per­cent in­fla­tion tar­get in two years is some­thing that I have in my mind,” Kuroda said to­day in Par­lia­ment. He said the BoJ may scrap a rule lim­it­ing the scale of as­set buy­ing and con­sider pur­chas­ing more bonds with longer ma­tu­ri­ties. The com­ments spurred in­vestors’ ex­pec­ta­tions for more mon­e­tary eas­ing, with the yen weak­en­ing and bench­mark bond yields fall­ing to a near 10-year low. An­a­lysts at banks from JPMor­gan Chase & Co. to Bar­clays Plc ex­pect the BOJ to add stim­u­lus as soon as the next pol­icy meet­ing on April 3-4. Kikuo Iwata, one of two new BoJ deputy gov­er­nors, told re­porters last week that the cen­tral bank should com­mit to achiev­ing the tar­get for con­sumer-price in­creases within two years. He has sug­gested that the BoJ lead­er­ship should be pre­pared to re­sign if they fail to meet that goal.

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