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Kuroda Pledges Loose Policy Until Price, Wage Gains Sustainable

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Bank of Japan Governor Haruhiko Kuroda said almost all of the country’s inflation is being caused by higher commodities prices and that the central bank must continue with easy monetary policy for now.

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(Bloomberg) — Bank of Japan Governor Haruhiko Kuroda said almost all of the country’s inflation is being caused by higher commodities prices and that the central bank must continue with easy monetary policy for now. 

“We have no choice other than continued monetary easing until wages and prices rise in a stable and sustainable manner,” Kuroda said at the Federal Reserve Bank of Kansas City’s Jackson Hole, Wyoming, retreat on Saturday. He was speaking from the audience during the question-and-answer session following a panel discussion.

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Inflation in Japan next year will decelerate toward 1.5% after approaching 2% to 3% this year, he said. Consumer prices excluding fresh food in July rose 2.4% from a year ago, data earlier this month showed, with energy costs accounting for around half the gains.

Kuroda’s message at Jackson Hole echoed his previous comments that current commodities-driven inflation is temporary, and that stronger wage gains are needed to create a positive growth cycle. 



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