Fukui pledges to maintain current monetary policy

In a prepared statement to the Diet, the BoJ governor said while the Bank of Japan commits itself not to terminate the present monetary policy guidance before the year-on-year change in the core CPI starts to move stably above zero, "even if" such key criteria are met, "we may judge it appropriate to maintain the current policy stance, depending on economic and price developments." Fukui said more explicitly at last week's press conference that although there is a view that Japan is beginning to pull out of the prolonged deflation, "it is also a very tough job for Japan to pass through the last mile (before it overcomes the prolonged deflation)," Fukui said.

Fukui stressed Tuesday before the Diet that while Japan is now experiencing a brighter economic development, if compared to the situation one year ago, "it is also true that there are many challenges before Japan overcomes the prolonged deflation and achieves a sustained growth." "It is therefore important that firms, financial institutions and authorities all make more efforts to revitalize the economy," he added

"The Bank of Japan will make its utmost efforts to help Japan overcome the deflation and restore it to the sustained recovery path, by supporting the positive economic activity."