Kuroda pledges to maintain ultra-loose monetary policy

Bank of Japan Governor Haruhiko Kuroda emphasized that one of the main causes of inflation in the country is the rise in commodity prices. According to him, the central bank should continue to stick to ultra-easy monetary policy. 

At the Federal Reserve Bank of Kansas City's economic symposium in Jackson Hole on Saturday, Kuroda said they would continue to ease monetary policy until steady and sustained increase in wages and prices is seen. 

As reported by him, inflation in Japan is likely to slow to 1.5 percent next year. This year, it accelerated to 2-3 percent. According to data released earlier this month, consumer prices excluding fresh food followed a 2.2 percent increase in July from a year ago. It should be mentioned that energy accounted for about half of the increase. 

The main points of Kuroda's speech in Jackson Hole echoed his previous remarks: firstly, a rise in the current inflation caused by higher commodity prices is temporary; secondly, by raising the wages it’s possible to create a positive growth cycle.