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Japan PM Abe, BOJ's Kuroda reiterate call for 'bold' monetary easing

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Japan PM Abe, BOJ's Kuroda reiterate call for 'bold' monetary easing

Bank of Japan Governor Haruhiko Kuroda said the central bank must maintain its ultraloose monetary policy as inflation remains far from its 2% target, a position echoed by Japan's Prime Minister Shinzo Abe, Reuters reported.

Kuroda conceded that the prolonged easing was putting additional strain on regional banks already burdened by shrinking margins due to an aging Japanese population.

"Still, it's extremely important to achieve our 2% inflation target," said Kuroda. "Japan's inflation remains distant from our target, so we need to patiently continue with powerful monetary easing."

Government data showed Japan's core consumer prices rose an annual 0.9% in December 2017, unchanged from the previous month.

Meanwhile, Abe told parliament Feb. 5 that he hoped the central bank would continue to promote "bold" monetary easing to reach its 2% inflation target, Reuters reported. Abe said it was too early to declare an end to deflation even amid a strengthening economy.

"An end to deflation means prices aren't falling consistently and there is assurance Japan won't slip back into deflation in the future," Abe told parliament. "We need to look at developments more."

The BOJ kept its monetary policy unchanged in January, even as some policymakers signaled the need to hike rates.