BOJ Iwata: Japan can withstand tax hike pain
MIYAZAKI, Japan Feb 6 (Reuters) - Bank of Japan Deputy Governor Kikuo Iwata said on Thursday the economy can withstand the pain from a sales tax hike in April as exports and capital expenditure will gradually pick up and offset the drop in household spending.
He also said the central bank will not end its ultra-loose monetary policy unless its 2 percent inflation target is achieved in a stable manner.
"Japan is making steady progress toward meeting the BOJ's 2 percent price target. Under such circumstances, steadily proceeding with our current policy is what is most important," Iwata told business leaders in Miyazaki, southern Japan.
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