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BOJ's Kuroda says told Abe will continue with ultra-easy policy

Published 17/05/2017, 06:29
© Reuters. Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said he told premier Shinzo Abe that the central bank will continue its ultra-easy monetary policy in a meeting held on Wednesday.

"I told the prime minister that Japan's economy is steadily recovering and will continue to grow above its potential," Kuroda told reporters after the meeting.

"Under these conditions, prices will rise. But inflation is still far from our (2 percent) target. I told the prime minister that we will continue with our monetary easing programme," he said.

In his first such meeting since January, Kuroda said he did not receive any particular request from Abe on monetary policy.

Asked whether they talked about the chance of his reappointment when his current five-year term ends in April next year, Kuroda said it was not his place to discuss such issues.

The meeting is a regular one, usually held over lunch once every few months, to exchange views on the global and Japanese economies.

The BOJ has kept monetary policy steady since revamping its policy framework in September last year to one better suited for a long-term battle against deflation.

© Reuters. Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo

With the economy recovering steadily, many analysts expect the BOJ's next move to be a reduction of monetary stimulus rather than an expansion.

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