Investing.com - Bank of Japan Governor Haruhiko Kuroda on Wednesday said expectations of lower prices among firms and households are "slightly concerning" but the bank's mission to achieve 2% inflation is "unshaken."
He repeated the official view that the underlying price trend has been "improving steadily" despite some soft data, Kuroda said in a speech that recent surveys and the outlook based on inflation-indexed bonds is causing him to think "it is slightly concerning" due mainly to falling crude oil prices.
The BOJ's aggressive easing since April 2013 has failed to boost inflation from zero to stable 2% as falling energy prices sent the year-on-year change in the core CPI, which excludes volatile fresh food prices, back to zero from a recent peak of 1.5% and wage growth remains slow. Earlier this month in an attempt to jar policy along, the BoJ introduced negative interest rates, surprising markets.
"The commitment by the bank to achieve the price stability target of 2% is firm and unshaken. Given that the central bank is firmly committed to the price stability target and is taking necessary measures as appropriate, the goal will surely be achieve," Kuroda said.
"Let me conclude my speech by reiterating what I have repeatedly stated since I took the governorship of the Bank of Japan: The Bank of Japan will do whatever we can to achieve the price stability target of 2%."