NAGOYA, Japan (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Monday he saw the outlook for overseas economies as among key risks to meeting the central bank’s 2 percent inflation target.
Kuroda also said the impact of sales tax hikes starting next year was a risk for Japan’s economy although the possibility of any damage becoming bigger than the BOJ’s forecast was limited for now.
“Of course, we are ready to adjust monetary policy without hesitation if upside or downside risks materialize, Kuroda told business leaders in Nagoya, central Japan.
The BOJ has kept monetary policy steady since offering an intense burst of monetary stimulus in April, pledging to double base money via aggressive asset purchases to achieve 2 percent inflation in roughly two years.
Reporting by Leika Kihara; Editing by Shinichi Saoshiro