BoJ says QQE prevents not just deflation but excessive inflation

TOKYO: Bank of Japan deputy governor Kikuo Iwata has signalled the possibility of withdrawing the central bank’s massive monetary stimulus if the economy overheats and nudges up inflation well above its 2% price target.

Iwata voiced confidence that Japan was making steady progress in meeting the central bank’s inflation goal with prices rising not just because of a weak yen, which inflates import costs, but strength in domestic demand.