YOKOHAMA, Japan (Reuters) - Bank of Japan Governor Haruhiko Kuroda said he was confident inflation will accelerate “significantly” with massive monetary stimulus and fiscal support, CNBC reported on Friday.
“The mindset (of the Japanese public) is still quite cautious about inflation expectations. But I‘m quite sure that with continuous accommodative monetary policy supported by fiscal policy, we would eventually be able to raise prices significantly,” Kuroda told CNBC in an interview that ran on Friday.
Kuroda also said Japan’s economy has showed a “strong recovery trend” in the past two quarters, which will help narrow the output gap, tighten the labor market and eventually push up inflation to 2 percent.
Kuroda is in Yokohama, eastern Japan, to meet financial leaders gathering for the Asian Development Bank’s annual meetings.
Reporting by Leika Kihara; Editing by Sam Holmes