8 Apr 2014
BoJ's Kuroda: Sales tax hike impact to wane by summer
FXStreet (Łódź) - Following the Bank of Japan's decision to maintain monetary policy unchanged at the April meeting on Tuesday, Governor Haruhiko Kuroda said that the economic recovery in Japan was progressing gradually, not impeded by the sales tax hike introduced this month.
The tax rise could weigh on GDP growth in the second quarter of the year, but a rebound is expected later on, thanks to the improvements on the labor market and in the income situation, Kuroda insisted. He added that downside risks from overseas economies have decreased.
The BoJ head suggested that inflation in Japan should reach the central bank's 2% target by the end of this or by the beginning of the next fiscal year, assuring at the same time that risks would be observed and policy adjusted if needed.
Currently however no additional easing is being considered, Kuroda said.
The tax rise could weigh on GDP growth in the second quarter of the year, but a rebound is expected later on, thanks to the improvements on the labor market and in the income situation, Kuroda insisted. He added that downside risks from overseas economies have decreased.
The BoJ head suggested that inflation in Japan should reach the central bank's 2% target by the end of this or by the beginning of the next fiscal year, assuring at the same time that risks would be observed and policy adjusted if needed.
Currently however no additional easing is being considered, Kuroda said.