BoJ Kuroda: Japan on track to beat deflation

FXstreet.com (Barcelona) - In a speech at a meeting of the Research Institute of Japan, BoJ Kuroda, in headlines crossing now the wires, said he continues to expect a moderate recovery in Japan going forward, while he remains confident that the country is on track to beat deflation, although time will be needed to reach the 2% price level, without specifying a concrete date.

Kuroda reiterated that the BOJ easing has not intention to depreciate the currency, adding that wage raises is a critical component to achieve sustained inflation. On the QE practices, Kuroda said it is working well to end deflation.

Kuroda hinted that while fiscal consolidation is necessary, Japan's economy faces its biggest risk from outside the country, saying they are closely monitoring the situation in China to see if they achieve a 'soft landing. Kuroda also said the CPI growth rate, capex will gradually accelerate. On the sales tax, Kuroda said don't think raising the tax in two steps will hurt economic growth.