Head of the Bank of Japan Haruhiko Kuroda addressed the Parliament (28.03.2018)
The head of the Japanese Central Bank, Haruhiko Kuroda, addressed the parliament. In his speech, he outlined the position of the bank’s management on the main issues of monetary policy.
In particular, Kuroda said that in the near future the Bank of Japan does not plan to change its rather soft monetary policy. This will only be possible if inflation in the country rises to the target of two per cent. This figure is still very far from the target. Consumer prices in Japan rose by only one percent last month. In addition, the strengthening of the national currency by seven percent increased the likelihood of the risk of a decrease in the rate of growth of consumer prices.
The decision on the change in the monetary policy will be made on the basis of data on the economic situation and a moderate increase in inflation. Says Kuroda. At the same time, he assured that the way out of the soft monetary policy would be slow and gradual. But now there is no reason to discuss this process yet.
In the past month, Haruhiko Kuroda was reappointed head of the Bank of Japan for a second five-year term. None of the former heads of the Japanese Central Bank had held this high office for two consecutive five-year terms before him.
In general, Kuroda’s speech did not contain important comments that could significantly affect the dynamics of the national currency rate.