BOJ’s Kuroda says no immediate need to overhaul policy framework

Bank of Japan Governor Haruhiko Kuroda said on Tuesday he saw no immediate need to overhaul the central bank's monetary policy framework, as the hit to the economy from COVID-19 keeps inflation distant from its 2 per cent inflation target.

But he said the BOJ would not rule out future debate of a review, as other major central banks such as the US Federal Reserve look deeper into why inflation remains subdued despite years of aggressive monetary easing.

"There is no need now to review our policy framework. But there could be debate at an appropriate timing in the future," Kuroda said in a semi-annual testimony to parliament.

Kuroda also stuck to the BOJ's view that Japan's economy is on track for a moderate recovery, even as a recent resurgence in coronavirus infections cloud the outlook.

In its current quarterly forecasts issued last month, the BOJ expects Japan's economy to contract 5.5 per cent in the fiscal year ending in March 2021 but expand 3.6 per cent in the following year.

"I don't think we need to overhaul our projections" due to the global resurgence in COVID-19 infections, Kuroda said.

 "Our view is that Japan isn't heading toward deflation, though we're watching developments in service consumption and capital expenditure carefully," he added.

Under a policy dubbed yield curve control, the BOJ sets its short-term rate target at -0.1 per cent and that for long-term rates around zero. It also buys huge amounts of government bonds and risky assets, though inflation remains distant from its 2 per cent goal.

Football news:

Platini on Ronaldo: He's an idol for boys, like me in the ' 80s. Cristiano and Messi are two different phenomena
Lautaro on the contract with Inter: The agent and the club are working on it. I feel good in Milan
Messi worked in Barcelona's general group on the eve of the Spanish Super Cup final with Athletic
Pablo Sabaleta: Man City are capable of reaching the final of the Champions League, but the opponents there do not forgive mistakes
Filipe Luis: Simeone is not so good at communicating with players, but sometimes goes over pride
Ronaldo: Ronaldo is not the same as in Real Madrid. Now he knows how to control himself. Staying in the shadows for the entire match, he can harm the opponent in a minute
Soslan Gatagov is among the commentators of the Liverpool - Manchester United match on Okko. Track with Stognienko-separately