Japan Bank President Haruhiko Kuroda (Haruhiko Kuroda) said it plans to increase the sales tax rate will not hurt the economy and the need to repair the public finances, the Prime Minister on Monday may be delayed, or even dilute the policy more and more signs.
Kuroda, the appointment of Prime Minister Shinzo Abe (Abe
Abe has ordered alternatives study, 10% plan to double the sales tax, government sources said, worrying rise in bond yields could undermine the government and the central bank's efforts to get rid of deflation.
, "Kuroda in a speech in Tokyo, said:" I do not think, according to current plans, the sales tax increase would do any harm to a great economy.
"Japan's central bank to buy bonds price stability, if people think this is financing government spending, improve long-term yields, making monetary policy effective."
Kuroda said the Bank of Japan to expand the quantitative easing policy, which launched in April, boosting Japan's 15 years of deflation, has made tremendous progress.
Inflation rate may be close to the central bank's 2% target, Japan's economy grew more than its potential, which will reduce the negative output gap, he said.
Overseas economies pose the greatest risk of this prospect, the solution to the European debt crisis, China's economy shifted away from excessive investment in fixed assets, he said.
Sales tax is due to rise in 2015 to 8% in April 2014 and then to 10%, Abe said he will decide whether to continue in the fall, the first increase.
His finance minister last week to support the tax increase, saying that Japan needs to fix its finances seriously.
Dropouts fiscal reform could undermine investor confidence, which has allowed Japan to borrow money cheaply, even if its debt burden is the worst in the major economies of its $ 5 trillion more than twice the size of the economy.
 



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