TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Thursday consumer inflation was “moving around 1 percent,” offering a brighter view on prices than he did three months ago.
“Japan’s economy is expected to continue expanding moderately,” Kuroda said in a speech to a quarterly meeting of the central bank’s regional branch managers.
“The BOJ will make necessary policy adjustments to sustain the economy’s momentum to achieve the price target … while looking at risks that warrant attention,” he said.
At his speech at the previous meeting three months ago, Kuroda had said inflation was moving around 0.5 to 1 percent.
Under a policy dubbed yield curve control, the BOJ guides short-term interest rates at minus 0.1 percent and the 10-year government bond yield around zero percent to achieve its 2 percent inflation target.
(Reporting by Leika Kihara; Editing by Chang-Ran Kim)