Speaking to the parliament, BoJ Governor Haruhiko Kuroda said the central bank isn’t seeking to push up inflation alone. Instead, it’s aiming at creating to situation where wage and employment conditions improve with corporate profits too. That is, creating a “positive economy cycle”.
Meanwhile, Kuroda added the 2% inflation target helps in long-run currency stability. But for now, inflation is likely hover around 1% since wages growth is not fast enough yet.
Separately, Finance Minister Taro Aso also told the parliament that pushing up inflation alone “won’t do any good” without improvement in people’s livelihoods.
