The recent dip in inflation in Japan may mean inflation expectations are not yet anchored at the Bank of Japan's 2 percent target, and the bank will approve more quantitative easing or lower negative interest rates "without hesitation," BOJ Governor Haruhiko Kuroda said on Saturday.
"The Bank of Japan will continue to carefully examine risks and take additional easing measures without hesitation," Kuroda said at the Federal Reserve's monetary policy symposium in Jackson Hole, Wyoming. "It could be that long-term inflation expectations are yet to be anchored in Japan."
Kuroda said he felt that between quantitative easing and negative interest rates the BOJ had an "extremely powerful policy scheme" and "will act decisively as we move on" in order to raise inflation to two percent.
But he acknowledged the struggle, with evidence accumulating that inflation expectations in the country have yet to rebound after the collapse of oil prices in 2014, and despite the bank's massive bond buying and negative interest rate policies.