MNI: BOJ Kuroda: 2% Price Target Will Not Be Achieved in FY'20

     TOKYO (MNI) - The Bank of Japan bank's 2% price stability target will not

be achieved in fiscal 2020, the year to March 31 2021, Governor Haruhiko Kuroda

told a parliamentary committee Tuesday.

     Kuroda told lawmakers that the rise in inflation rate is being impeded by

structural factors and "the possibility is small that the 2% price target will

be achieved in fiscal 2020."

     However, Kuroda said that Japan's inflation rate is expected to rise toward

the 2% price target on the back of a continued economic recovery and as

structural factors gradually disappear.

     "The economy has improved clearly, but the 2% price target hasn't been

achieved. We need to patiently maintain the easy policy as it takes time to

achieve the 2% price target," Kuroda said.

     The governor said he sees no need of additional easy policy now although it

is vital for the BOJ to maintain its current powerful easy policy to achieve the

2% price target.

     When asked about the negative impact of easy policy on profits at regional

banks, Kuroda said, "We know the severe environment facing regional financial

institutions and we will continue to pay attention to developments of banks'

profits and financial conditions."

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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