Connect to share and comment

BoJ nominee vows to conquer deflation

PlacardEnlarge
(Globalpost/GlobalPost)

The government's nominee to lead the Bank of Japan vowed Monday to do "everything possible" to conquer long-running deflation, and blamed previous central bankers for failing to solve the problem.

"I will clarify my stance that we will do everything possible to get rid of deflation," Haruhiko Kuroda told a parliamentary committee, according to Jiji Press.

Kuroda, an experienced finance veteran who has announced his resignation as head of the Manila-based Asian Development Bank, is widely expected to be confirmed by parliament as Japan's top central banker in the coming weeks.

The 68-year-old has previously blasted the central bank for not doing enough to lift the economy and is likely to lead a fresh drive for more spending and aggressive monetary easing.

On Monday, he applauded a move by the bank in January -- under heavy pressure from the new government of Shinzo Abe -- to adopt a two-percent inflation target aimed at stoking the world's third-largest-economy.

But he dismissed the bank's 101 trillion yen ($1.08 trillion) asset-buying programme, its main policy tool, as "not enough" although the BoJ has also announced the launch next year of an unlimited easing programme.

"The size and items subject to the Bank of Japan's current asset purchase are not enough," Kuroda was quoted by Jiji as saying, although he called the inflation target "utterly unprecedented".

"If appointed, I think that achieving the (inflation) objective at the earliest time is my most important duty," he added.

mis-si/pb/jw

http://www.globalpost.com/dispatch/news/afp/130303/boj-nominee-vows-conquer-deflation