BOJ chief sees price rises breaking 'deflation equilibrium'
TOKYO (REUTERS) - Bank of Japan Governor Haruhiko Kuroda said consumer inflation will exceed 1 per cent in the first half of next year and help the central bank achieve its goal of changing the public's perception that deflation will persist.
In the past 15 years, Japan has been in a state of "deflation equilibrium" in which companies and households held off on investment and consumption on the assumption that prices will not rise, Kuroda said on Wednesday.
The BOJ is aiming to break that equilibrium through its aggressive monetary stimulus, so that companies and households will spend more now on expectations that prices will rise ahead, he said.
"The BOJ's monetary policy differs from that of other central banks in that it focuses on changing public expectations (on prices)," Kuroda said in a speech at a meeting of the business lobby Keidanren.