Exiting BOJ chief defends monetary easing as Japan out of deflation
The Bank of Japan's monetary easing was "appropriate" and effective in jolting Japan out of deflation, and its retention under new leadership is of utmost importance as inflation expectations are heightening, outgoing Governor Haruhiko Kuroda said Friday.
In his last press conference as governor, Kuroda again expressed his regret over the BOJ's failure to attain its 2 percent inflation target stably before his term ends on Saturday. But he added that goal is still nearer than when he took office in 2013. Kuroda will hand the reins to academic Kazuo Ueda, a monetary policy expert who has taken the stance that monetary easing should be in place. The outgoing governor acknowledged that the past decade of unprecedented monetary easing has had side effects but denied that the policy tool had reached its limits. (and remain in complete and total denial so instead of crashing the wold's economy they will focus on destroying muh Yen because it will go right back to where it was last year)
https://www.marketwatch.com/investing/currency/usdjpy?mod=mw_quote_switch
"What is critically important is to promote economic growth and sustain wage growth through monetary easing," Kuroda, 78, said at the press conference.
"Large-scale monetary easing has shown its effects, and our guiding of policy has been appropriate," he added.
Kuroda's whirlwind tenure was devoted to beating deflation and meeting what he has described as a "global standard" of 2 percent inflation.
Inflation, as measured by the core consumer price index, excluding volatile fresh food items, hit 3.1 percent in February, though the BOJ expects the rise to be temporary absent robust wage growth. By comparison, when Kuroda became governor in March 2013, the rate had dropped 0.5 percent from a year earlier.
The "deep-rooted norms" that prices and wages will not rise, established during Japan's 15 years of deflation, are to be blamed for missing the inflation target, but external "shocks" from higher import costs, along with a tight labor market, are changing such perceptions now, the governor said.
Kuroda, known for taking aggressive monetary easing steps that later became known as "bazooka," made a sensational pledge in 2013 to achieve 2 percent inflation in two years and double the monetary base.
https://english.kyodonews.net/news/2023/04/3d4d6975095a-update1-boj-chief-kuroda-exits-as-he-defends-decade-of-monetary-easing.html
They got the 10 year cut in half starting with the banking "crisis" however it has crept right back to just under that "line in the sand" of .50%
https://tradingeconomics.com/japan/government-bond-yield