Bank of Japan to Maintain Monetary policies With 2% Inflation Target

Bank of Japan Governor Kazuo Ueda said on Tuesday that the central bank will maintain its ultra-loose monetary policy with patience because the 2% inflation target is still a long way off.

"We expect inflation to clearly slow below 2%" by the middle of the current fiscal year, Ueda said in parliament.

"Inflation is likely to rebound thereafter... though there is high uncertainty" about the outlook, he adds.

 Japanese Finance Minister Shunichi Suzuki said on Tuesday that as global economic and financial conditions change, he must guide fiscal policy based on common international understanding.

Suzuki stated to reporters On Monday, the finance minister's advisory panel argued that the economic fundamentals that have supported the yen's credibility are no longer considered absolute, and that policymakers must strive to maintain the currency's credibility.