Bank of Japan Governor Haruhiko Kuroda said the real exchange rate of the yen is already weak and it is unlikely to fall further.
Inflation is expected to be around 2 percent target in the first half of fiscal 2016, Kuroda told lawmakers on Wednesday.
He reiterated that the bank will examine both upside and downside risks to economic activity and prices and make adjustments as appropriate.
BoJ policy board member Takehiro Sato said if the massive bond purchase program is continued over a long period, it could lead to extremely low interest rates being built into the fiscal plan.
“Once market participants have concern about fiscal discipline, controlling long-term interest rates will become difficult, even for the Bank,” Sato said.
The material has been provided by InstaForex Company – www.instaforex.com