The Bank of Japan still has "enough ammunition" to hit its elusive 2 percent inflation target, Governor Haruhiko Kuroda said, amid some criticism the central bank's negative interest rates policy had failed to deliver.
Speaking after a two-day Group of Seven (G-7) meeting in Sendai, Japan, ended on Saturday, Kuroda said the sharp decline in commodity prices, including the slump in crude oil, had forced major economies to push back their inflation targets.
But he indicated he remained confident Japan could hit its 2 percent target – which it adopted in 2013 and has delayed three times so far - within the current time-frame of the first half of fiscal 2017.
"I think, yes, we have enough ammunition," Kuroda said, when asked whether the BOJ had sufficient monetary policy options, or "ammunition," left to achieve the target. "If necessary, we can further ease our monetary conditions in three dimensions. Quantitative, qualitative and interest rates."
Kuroda did not give specific examples of how these policy levers could be used going forward.