Asia Development bank boss supports further BOJ easing measures
"Some additional" measures could be justified for 2013, ADB president Haruhiko Kuroda said, stressing that he was speaking in his capacity as an economist and chief of the ADB, not as a BOJ contender.
Asian Development Bank president Haruhiko Kuroda, a potential candidate to head Japan's central bank, signalled that he favours greater monetary stimulus by the Bank of Japan this year.
"Some additional" measures could be justified for 2013, Kuroda said, stressing that he was speaking in his capacity as an economist and chief of the ADB, not as a BOJ contender.
Kuroda said that the Bank of Japan had "many" tools to achieve its 2 per cent inflation target, and that the "global standard" for the horizon to achieve such goals is two years.
Kuroda's remarks indicate the BOJ would embrace more aggressive steps to end deflation should Prime Minister Shinzo Abe nominate him to succeed Masaaki Shirakawa and should he win confirmation in Parliament.
The BOJ last month announced it would start open-ended asset purchases only in January next year, even as it unveiled a 2 per cent inflation target that its own forecasts showed won't be reached in the coming two years.
Japan's economy has suffered under a decade and a half of deflation, which has pushed up the real burden of debt and caused companies and households to put off spending, Kuroda, a former deputy finance minister for international affairs, said yesterdat. Falling consumer prices must be "eradicated", he said.