* BOJ must guard against risk of financial instability – Kuroda * Adds hitting price target will take time due to shock * Feasibility of price goal in doubt as pandemic hits growth (Recasts with quotes, context) By Leika Kihara TOKYO, May 14 (Reuters) – Bank of Japan Governor Haruhiko Kuroda said there was no change to its target of getting inflation to 2%, despite headwinds from the coronavirus pandemic that is hurting the economy and stoking fears of a return to deflation. He also said the central bank must guard against the risk that the pandemic, if prolonged, could threaten the country’s banking system through increases in corporate bankruptcies. “As the economy worsens, Japan’s banking system is coming under increasing stress. We need to be vigilant more than before to such developments,” Kuroda said in a seminar on Thursday. Kuroda said it would take “quite a long time” for Japan to see inflation reach his 2% target because the economy was suffering a huge shock. But once the impact of the pandemic subsides, he said, the economy is likely to gradually recover thanks to pent-up demand at home and abroad, as well as the effect of massive stimulus measures… Read full this story
- BOJ Kuroda says ready to ease if 2% inflation comes under threat
- BOJ policymaker shunned IMF proposal to set price target in range
- New Year Honours list: Stokes and Morgan rewarded for World Cup heroics
UPDATE 1-BOJ's Kuroda defends elusive inflation goal despite pandemic headwinds have 230 words, post on www.reuters.com at May 14, 2020. This is cached page on Drudgereport. If you want remove this page, please contact us.