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Bank of Japan Governor Haruhiko Kuroda said on Monday that it is vital the central bank to continues taking measures in response to Covid-19. A particular eye needed to be kept on financing conditions for firms in the face-to-face services sector, Kuroda told business leaders in Osaka City via an online conference.
Kuroda also addressed Japan's inflation rate, saying prices will rise in the period ahead, but would still not hit the 2% target through the current projection period. However, Kuroda said the BOJ maintained its view that the underlying price trend was 'solid'.
"The BOJ has been examining other various core indicators in order to capture the underlying trend in prices, and all these indicators suggested that prices have been steady despite the deterioration in the economy," he said.