Boj Chief Sticks To Monetary Easing
The head of Japan's central bank has reiterated his commitment to continue monetary easing. That's despite growing pressure over the yen's depreciation.
Kuroda Haruhiko says the economy needs more support until prices rise stably and are accompanied by wage growth.
Kuroda told the Diet on Monday that he believes Japan's rising inflation is mainly due to higher import prices.
He said they are being caused by trends in the international commodities market and the impact of the weaker yen. The Japanese currency is at a 32-year low against the dollar.
The consumer price index rose 2.8 percent in August from a year earlier.
Kuroda said that he "expects the cost factors from overseas to recede next year, and the CPI to decline below the Bank of Japan's target of 2 percent in fiscal 2023 and beyond."
He said the Japanese economy is still recovering from the pandemic. He said higher prices for resources, caused by the situation in Ukraine, are putting downward pressure on the economy.