Bank of Japan Gov. Haruhiko Kuroda on Monday brushed aside the chance of a near-term exit from ultraloose monetary policy, but voiced hope that intensifying labor shortages will prod firms to raise wages.
Kuroda said the BOJ's decision last week to widen the allowance band around its yield target was aimed at enhancing the effect of its ultraeasy policy, rather than a first step toward withdrawing its massive stimulus program.
"This is definitely not a step toward an exit. The Bank will aim to achieve the price target in a sustainable and stable manner, accompanied by wage increases, by continuing with monetary easing under yield curve control," Kuroda said in a speech delivered to a meeting of business lobby Keidanren.
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