Suspicions are growing between Japan's government and central bank, with an adviser to Prime Minister Shinzo Abe suggesting that the bank may be steering away from its commitment to 2% inflation. "I wonder if [bank Governor Haruhiko] Kuroda is being affected by fukumaden," or "a den of conspirators," said adviser Kozo Yamamoto.
Japan's long-term outlook for boosting inflation to 2% annually remains intact even though oil prices are causing a momentary pause, Bank of Japan Governor Haruhiko Kuroda told Prime Minister Shinzo Abe. "I explained that the economy is doing well and remains on track for recovery," Kuroda said.
On the one issue of spurring inflation, Japanese Prime Minister Shinzo Abe and central bank Governor Haruhiko Kuroda are on the same page. But observers note a growing policy split evident in other ways that may undermine the stimulative thrust of "Abenomics."
Saying that strong growth in Japan would produce gains in Asia and other parts of the world, World Bank President Jim Yong Kim endorsed Prime Minister Shinzo Abe's economic stimulus program. Kim offered his support during a summit on Africa in Yokohama.
Haruhiko Kuroda, Prime Minister Shinzo Abe's choice to be the next governor of the Bank of Japan, took a step closer to confirmation with endorsement by the lower house of parliament. Upper-house approval is expected today before a required second vote in the lower house.