Bank of Japan Governor Haruhiko Kuroda said, “We have slightly upgraded our view of overseas economies,” Kuroda told the news conference following the BOJ’s monetary policy announcement. He added, “The outlook is brightening somewhat due to recovery signs in the United States and Europe.”
His statement was aimed to dispel concerns that Japan’s exports and recovery were vulnerable to weakness overseas.
The BOJ left its policy unchanged and maintained its bond purchasing program base by as much as 70 trillion yen a year at today’s meeting, which was widely expected. Kuroda was also optimistic about the prospects of the BOJ’s objective to meet its 2 percent inflation target within two years by increasing the monetary stimulus base through asset purchases. Kuroda reiterated the BOJ’s readiness to ease monetary policy again if risks to Japan’s economy should occur, adding that the central bank still had policy measures available if needed.
Minutes of the past BOJ meetings has also shown some board members voicing concern over disinflation may be spreading globally. The euro zone in particular, inflation has fallen well below the ECB’s target. Kuroda shrugged off the weak euro zone inflation risk, and stressed that the ECB had already responded by cutting interest rates early this month.