Economy moving “smoothly” to achieve 2% inflation target: BOJ chief

TOKYO, (PNA/Kyodo) — Bank of Japan Governor Haruhiko Kuroda showed confidence Friday in achieving the central bank’s 2 percent inflation target to beat deflation, saying that the Japanese economy is moving “smoothly” toward the goal.

But for the economy to realize sustainable growth, it is an “essential condition” that the government establish “a sustainable fiscal structure,” the BOJ chief said, ahead of a decision by Prime Minister Shinzo Abe early next month on whether to raise the nation’s sales tax as planned in April.

He added that the stable moves of Japan’s long-term interest rates reflect trust of the market and the public that Japan is making efforts to restore its fiscal health.