BOJ's Kuroda says focussing on long-term price trend
By Leika Kihara
TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Thursday he was focussing on the long-term inflation trend, which showed the country remained on track to hit his ambitious price target.
Kuroda said that while consumer inflation may slow in the short-term due to slumping oil prices, it will accelerate in the latter half of the next fiscal year beginning in April as companies raise wages and an economic recovery pushes up prices.
He also dismissed criticism, from some lawmakers and analysts, that the BOJ's aggressive monetary stimulus is hurting households by pushing up import costs through a weak yen.
"As a trend, price rises are continuing" reflecting improvements in the economy, Kuroda told parliament.
"What's important is to look not just at price moves of individual goods, but at the medium- and long-term trend of prices," he said, adding that there are signs companies are more keen to raise base salaries in spring wage negotiations.
Kuroda repeated that Japan is likely to hit the BOJ's price target "in a period centering (in or around) fiscal 2015" and that there was no change to the bank's stance of aiming to achieve its price goal in roughly two years.
The BOJ kept monetary policy steady in January even as it sharply cut its inflation forecast for next fiscal year reflecting the downward pressure from slumping oil prices.
Some market players believe the BOJ may be forced to ease again soon as continued declines in oil prices push core consumer inflation, which excludes volatile food but includes energy costs, further away from its 2 percent target.
(Reporting by Leika Kihara; Editing by Jacqueline Wong)
