TOKYO–Bank of Japan Governor Haruhiko Kuroda reiterated Friday that the central bank would stick to its monetary easing program as the nation’s economy is still recovering from the impact of the pandemic.
“While the inflation rate is expected to rise to around 2% in the short run, this will be driven by energy prices and lack sustainability,” Mr. Kuroda said in a speech. “The bank therefore does not consider that scaling back the current monetary easing is appropriate.”
Japan’s economic situation is “completely different” from the U.S. and Europe where economies have already recovered to pre-pandemic levels and inflation is rising at a much faster pace than in Japan, Mr. Kuroda said.
The BOJ governor also said that short term, excessive moves in the yen aren’t desirable, while a weaker yen could boost exporters’ profits from overseas.
Write to Megumi Fujikawa at [email protected]