Weekend Economists Down Under May 23-26, 2014

[xchrom]

41. BOJ's Kuroda says options remain if further easing needed

http://uk.reuters.com/article/2014/05/24/uk-japan-economy-boj-idUKKBN0E400R20140524

(Reuters) - Bank of Japan Governor Haruhiko Kuroda said the central bank still has policy options left if it were to ease monetary policy further to fend off risks that may threaten the achievement of its price target.

Kuroda repeated his view that the world's third-largest economy is making steady progress toward meeting the BOJ's 2 percent price target, with core consumer inflation having reached 1.3 percent for four straight months in March.

"But we are ready to adjust policy, be it further monetary easing or something else, if changes in economic and financial developments derail the path toward meeting the price target," he said in an interview with the Nikkei business daily published on Saturday.

Kuroda said the BOJ will not ease incrementally in response to temporary fluctuations in the economy, suggesting that the bank will consider acting again only if it sees enough evidence that doing so is necessary to meet the price target.