FXStreet (Łódź) - Speaking in Tokyo on Monday BoJ Governor Haruhiko Kuroda assured that the central bank's monetary policy easing was having the desired effect but that it could be modified if necessary.
Kuroda pointed out that Japan's economy was currently only halfway to BoJ's price target of 2% but that it was moving gradually moving towards the objective, which would most probably be met in financial year 2015. Easing would be continued until the 2% inflation was seen as stable.
He signaled that CPI was expected to slow down to 1% during the summer and then pick up from the second half of the year, stimulated by GDP gap improvement, rising inflation expectations.
The BoJ governor assured that Japan's potential growth rate didn't change the central bank's mandate and said that some time was still needed for the growth potential to rise. He expressed hope that the government would continue to steadily implement its growth strategy.
USD/JPY remained unmoved at 101.94 following Kuroda's remarks.