Boj Chief Kuroda Faces A Rocky Last Six Months
Bank of Japan Governor Kuroda Haruhiko's current term expires on April 8, and a series of economic headwinds could make his last six months on the job some of the toughest.
Kuroda has been in the role for a decade and is the BOJ's longest-serving leader.
When he took office, the central bank announced a 2-percent inflation target to lift Japan out of deflation and an economic slump.
Kuroda has overseen a massive monetary easing policy for the past nine and a half years, and he insists it should remain in place, for now.
He says although Japan's consumer price index has been above 2 percent for five straight months since April, surging commodity prices are not accompanied by wage hikes.
Meanwhile, the yen continues to depreciate as the United States and European countries move to tighten monetary policy.
On September 22, the Japanese government and the BOJ intervened in the currency market for the first time in 24 years.
If the central bank continues its easy-money policy, the yen could weaken further and push up prices of raw materials. On the other hand, a more hawkish approach could dampen the economy.
Last month, Kuroda said the BOJ would not raise interest rates for the time being. He also indicated that it would still take a while to achieve 2-percent inflation, adding that it may not be achievable without wage hikes.
Kuroda said the situation will still be tough one or two years from now, long after he's departed the BOJ's hot seat.