(MENAFN- Kuwait News Agency (KUNA)) Bank of Japan (BOJ) new Governor Haruhiko Kuroda on Tuesday renewed his pledge to achieve the 2-percent inflation target in two years and expand monetary easing, while calling for joint efforts with the government.
"The BOJ will consider every option to achieve its 2 percent inflation goal, " Kuroda said at a parliamentary session. "It is necessary to promote drastic monetary easing both in quantity and quality. But increasing the monetary base alone is not enough and we shouldn't rely on that effect," said Kuroda, who became the BOJ chief last week.
In order to pull the economy out of deflation, he urged the government to improve Japan's fiscal health and implement growth strategies. "The government can help the BOJ achieve the inflation target by creating demand," he said.
BOJ chief also said the central bank will consider increasing purchases of longer-term government bonds to pump more cash into the banking system. Under its current monetary easing program, the BOJ buys government bonds with a maximum maturity of up to three years. Kuroda, however, indicated that the central bank will buy five-year or longer-term government bonds.
The BOJ is scheduled to hold its first regular policy meeting under the new leadership on April 3-4, which is expected to focus on expansion of the central bank's financial asset purchase program, according to Kuroda. Â
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