TOKYO, March 11 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Tuesday that he sees no need to adjust monetary policy as the economy will continue to exceed its potential growth rate.
As widely expected, the BOJ board voted unanimously to maintain its pledge of increasing base money, its key policy gauge, at an annual pace of 60 trillion to 70 trillion yen ($589-$687 billion).
Following are key quotes from Kuroda’s news conference:
“We will examine both upside and downside risks to the economy and prices, and make adjustments as appropriate. As we examine the economy and prices at every policy meeting, if it becomes difficult to achieve our 2 percent price stability goal and if it turns out that the economy is not moving on track steadily, we would not hesitate to make adjustments as needed.”
“The growth rate may swing due to the effects of last-minute demand before the sales tax hike and a subsequent decline in demand. But even under such circumstances, Japan’s economy will continue to grow as a trend above its potential rate between 0.5 percent and 1 percent in the next fiscal year and the year after.”
“It is highly likely that (core CPI) will reach our price stability goal of 2 percent towards the end of fiscal year 2014 and early in fiscal year 2015 ... The economy is steadily on track to meet the 2 percent target.”