Kuroda says Bank of Japan can still achieve its inflation target     

The Bank of Japan can achieve its 2 per cent inflation target with the current level of monetary stimulus, even as it stands ready to adjust policy if needed, said Governor Haruhiko Kuroda. 

PHOTO: REUTERS

AUG 27, 20159:59 AM

[TOKYO] The Bank of Japan can achieve its 2 per cent inflation target with the current level of monetary stimulus, even as it stands ready to adjust policy if needed, said Governor Haruhiko Kuroda.

Mr Kuroda said he's watching risks from volatility in global financial markets and that the central bank has "many options" should it need to increase easing.

"At this stage, we have no concrete proposal for further accommodation," Mr Kuroda said at a Japan Society event in New York. "But if necessary, we will certainly make necessary adjustment."

Tumbling stocks and commodities prices and a surging yen in the wake of China's currency devaluation risk hurting sentiment in Japan and increasing deflationary pressure.

Data due Friday are forecast to show the BOJ's main inflation gauge dropping below zero for the first time since Mr Kuroda ramped up monetary stimulus in April 2013.

"Risks are clearly ballooning for the BOJ," Yasuhide Yajima, an economist at NLI Research Institute in Tokyo, said before Mr Kuroda's remarks. While the BOJ may bide its time, it is getting closer to the point for additional stimulus.

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