BOJ's Kuroda says 'deflationary mindset' will take time to dispel

Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan June 15, 2018. REUTERS/Issei Kato

SINTRA, Portugal (Reuters) - A ‘deflationary mindset’ that has taken hold in Japan will take time to dispel, the country’s central bank governor Haruhiko Kuroda said on Wednesday.

“The deflationary mindset that has become entrenched amongst people is quite tenacious and it will take time to completely dispel this mindset,” Kuroda told a European Central Bank conference in the Portuguese town of Sintra.

He added, however, that the momentum toward achieving the BOJ’s inflation target of 2 percent was “firmly maintained” provided that “further price rises were to be observed widely”.

Reporting By Francesco Canepa