TOKYO- 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 percent inflation target.
But he said the BOJ would not rule out future debate of a review, as other major central banks such as the U.S. 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.