Japan Fires Up the Printing Press: New Central Bank Chief Vows to End DeflationSubmitted by Cornmeal Smithy on Thu, 03/21/2013 - 14:15
By Leika Kihara and Stanley White
TOKYO, March 21 (Reuters) - The new governor of the Bank of Japan said the central bank is ready to use all means available, including buying longer-term assets, to achieve its 2 percent inflation target, underlining his resolve to beat nearly two decades of grinding deflation.
In his inaugural press briefing, Haruhiko Kuroda said bold action was needed to meet the inflation target in two years, supporting expectations the central bank will expand stimulus at its next regular policy-setting meeting scheduled for April 3-4.
Financial markets have speculated that Kuroda might even call an emergency meeting before April 3-4 to push through stimulus, after he had said during confirmation hearings that he would act with speed. But he gave few clues away on that score before a packed news conference.
"The BOJ has held emergency meetings in the past, so it's not impossible, but I shouldn't comment on whether there will be an emergency meeting," he said on Thursday.
The former top currency diplomat and his two deputies, former academic Kikuo Iwata and career central banker Hiroshi Nakaso, joined the BOJ on Wednesday with a mandate by Prime Minister Shinzo Abe to pursue bolder, unorthodox policies to finally stamp out the deflation that the central bank has struggled to tame for years.
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