MOSCOW, July 19 (Reuters) - The Bank of Japan will tell the Group of 20 that it will “strongly pursue” its qualitative and quantitative policies, Governor Haruhiko Kuroda said, referring to action to lift growth and end deflation.
Kuroda also said an eventual tapering of monetary stimulus by the U.S. Federal Reserve would be “natural and appropriate”, when asked about its impacts on emerging economies and the rest of the world.
“The world is talking about when the United States will start tapering off its quantitative easing gradually. But as the U.S. economy is steadily recovering, it is natural and appropriate in a sense that tapering off will occur eventually,” Kuroda, in Moscow for Group of 20 finance talks, said.
“Japan has just started qualitative and quantitative easing on April 4. It’s been only three and half months, and we need to proceed with it to achieve our 2 percent price stability target.”
The BOJ has launched the world’s most intense burst of monetary stimulus ever to beat deflation and stimulate the economy, pledging to inject about $1.4 trillion into the economy in roughly two years.
The central bank kept monetary policy steady last Thursday and offered a more optimistic view of the economy on signs that the benefits of a weaker yen and the government’s reflationary policies are spreading.
Asked about the Chinese central bank’s announcement on liberalising bank lending rates, Kuroda said: “You’d better ask China about specific contents and background, but I think it is desirable that (China) will steadily move towards financial liberalization.”