TOKYO, July 15 (Reuters): The Bank of Japan's (BOJ) governor voiced confidence on Tuesday that inflation would hold above 1.0 per cent even when a boost from energy costs fades, attempting to convince sceptics the economy was recovering and there was no threat of a return to deflation.
Haruhiko Kuroda, once Japan's top currency diplomat, also sought to keep the yen in check, warning that sharp gains were unwarranted with the BOJ maintaining its massive stimulus while its US counterpart started to think of interest rate rises.
In a news conference after a widely expected decision to keep monetary policy steady, Kuroda said the world's third-largest economy would ride out the effects of a sales tax rise in April and inflation would head towards 2.0 per cent next year.
"We're clearly seeing a shift in trend where companies, instead of cutting prices, are trying to heighten the quality of their goods to sell them at higher prices," he said.
"I don't think there is a possibility that consumer inflation will fall below 1 per cent."
Cut in GDP forecast won\\\'t affect inflation: BOJ hopes
FE Team | Published: July 16, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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