BOJ’s Kuroda: Risks to Japan’s economy, prices skewed to downside

The Bank of Japan (BOJ) Governor Haruhiko Kuroda voices the same concern expressed by a senior central bank official Seiichi Shimizu earlier this Friday, citing that the risks to the Japanese economy and the inflation outlook remain skewed to the downside.

Additional quotes

Cannot say there is nothing more monetary policy can do.

 It may take time but the BOJ must achieve 2% inflation by helping expand the positive output gap, prop up inflation expectations with a commitment to expand base money until inflation stably above 2%.

By stressing BOJ’s commitment to hit 2% inflation, it hopes to push up inflation expectations and lower real interest rates.