TOKYO: The Bank
of Japan's new chief said policymakers would live up to market expectations for
"bold" monetary easing, ahead of his first policy meeting since
taking up the post last month.
The two-day meeting, which starts Wednesday, comes as
BoJ Governor Haruhiko Kuroda has repeatedly talked up his plans to stoke the
economy and reverse years of deflation that has crimped private spending and
corporate investment.
"It is not easy to break out of 15 years of
deflation," he told a parliamentary committee on Tuesday.
But "it is important that we show a strong
commitment to mobilising all the policy measures that the Bank of Japan has and
doing everything possible, and that we explain this to markets
appropriately" to stoke growth.
"I will adopt bold monetary easing policies that
would meet (market) expectations," he added.
Kuroda's pledges to beat Japan's long-running
deflation has stoked speculation that the BoJ will launch a new wave of
aggressive policy measures that tend to weaken the yen, helping the country's
exporters.
The finance veteran and former head of the
Manila-based Asia Development Bank also laid out a plan to hit an ambitious
two-percent inflation target adopted by the bank in January, seen as more
explicit than a previous "goal".
Japan "must achieve" the target "as
soon as possible", Kuroda said, adding that he was eyeing a two-year
timeframe that some observers have said was unlikely given the country's long
struggle with falling prices.
Prime Minister Shinzo Abe, who took office in December,
has pushed for big government spending and called for aggressive monetary
easing by the BoJ to breathe new life into the world's third-largest economy.
Markets have cheered so-called "Abenomics"
in recent months, with Tokyo's benchmark Nikkei 225 index soaring while the yen
weakened on forex markets.
- AFP/xq
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