BOJ Won't Raise Rates Until Inflation Reaches 2%, Gov Kuroda Says

By Megumi Fujikawa

Bank of Japan Gov. Haruhiko Kuroda said Tuesday that the bank hasn't discussed the possibility of rate increases despite global inflationary pressures.

"We are not in a situation which we can discuss normalization or exiting" monetary easing, Mr. Kuroda said at a news conference. The bank is committed to maintaining easy policy until inflation reaches stably above 2%, he added.

Earlier Tuesday, the bank raised its price forecast slightly in its quarterly outlook report. It now expects inflation of 1.1% in the year ending March 2023 and in the following year, up from previous projections for 0.9% and 1.0%, respectively.

Mr. Kuroda said recent price increases are based on temporary factors such as higher energy costs, but inflation is expected to move toward the bank's 2% target eventually in a more sustainable manner with improvements in demand.

Write to Megumi Fujikawa at [e-mail]

(END) Dow Jones Newswires

01-18-22 0254ET