BoJ’s Kuroda sees inflation remaining short of 2% target

Rising prices: A wholesaler stands in front of frozen tuna at a fish market in Tokyo. Analysts expect Japan’s core consumer inflation to accelerate to near 2% from April as the effect of cellphone fee cuts dissipate. — AFP

TOKYO: Japan is unlikely to see inflation hitting a central bank target of 2%, even accounting for rising energy costs, Bank of Japan (BoJ) governor Haruhiko Kuroda say, making the case for keeping monetary policy ultra-easy.

His remark highlights the widening divergence between the BoJ’s dovish stance and the United States Federal Reserve (Fed), which raised interest rates on Wednesday for the first time since 2018 and laid out plans to keep hiking borrowing costs.