Bank of Japan
(BoJ) Governor Haruhiko Kuroda
said the recent pace of growth in the world’s third-largest economy
is probably unsustainable and pledged to continue with very accommodative monetary policy “for some time” because the BoJ is far from its inflation target.
“I think 4 per cent growth is excellent but we don’t think 4 per cent growth can be sustained. Around 2 per cent growth is likely,” Kuroda said in an interview on Bloomberg Television in Jackson Hole, Wyoming. “I think for some time we have to continue this extremely accommodative monetary policy.”
The BoJ chief, who joined Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi at the mountain retreat for an annual gathering monetary policy makers, said he’s watching moves by global colleagues but added that BOJ policy has to be aimed at conditions in Japan.
“The economic and price situation in the US is much, much better than the situation in Japan,” Kuroda said. He noted that Japanese businesses and labour unions still exhibit a “deflationary mindset,” which is crimping price gains.