BOJ’s Kuroda need to stick with easing, watch price trend

Tokyo (Reuters): Bank of Japan Governor Haruhiko Kuroda said maintaining the current easy monetary conditions is appropriate because prices are lagging improvements in the economy and remain distant from the central bank’s inflation target.

Kuroda, in a speech on Wednesday, reiterated the BOJ’s growing optimism on the economic outlook due to rising exports, higher factory output, and a tightening labour market.

Kuroda’s remarks came after minutes of the central bank’s April 26-27 meeting showed policymakers see no problem if government debt purchases fall below its guidance for market operations.

“Our economy is on firmer footing, but we are still distant from our 2% inflation target,” Kuroda said.