TOKYO Jan 11 It is important for the Bank of
Japan to commit to unlimited asset purchases to achieve 2
percent inflation, Haruhiko Kuroda, president of the Asian
Development Bank, said on Friday.
Kuroda, a potential candidate to replace BOJ Governor
Masaaki Shirakawa whose term expires in April, also said at a
seminar in Tokyo that the yen is still overvalued and further
declines would not be out of place.
Flexible inflation targeting could include steps to prevent
prices and the jobless rate from deviating too far from a
certain level, former deputy BOJ governor Kazumasa Iwata said at
the same seminar.
Iwata, another potential candidate as the next BOJ governor,
also said Japan's jobless rate, which currently stands at 4.1
percent, may have to fall to 3.5 percent for wages to rise.