Bank of Japan (BoJ) governor, Haruhiko Kuroda has claimed that quantitative easing is working and Japan's economic recovery will continue.
Speaking to credit cooperative officials, the BoJ governor said:
The BoJ will continue with quantitative and qualitative easing, aiming to achieve the price stability target of two per cent, as long as it is necessary for maintaining this in a stable manner.
The BoJ's target of two per cent inflation and a declining yen is one part of Japan's economic strategy known as the three arrows of Abenomics. The second arrow came in the form of £70bn of fiscal stimulus in public works and infrastructure projects, along with tax incentives to encourage firms to hire more workers and increase salaries.
The third arrow of Abenomics is deregulation. Japan will implement reforms to boost long term growth by reforming labour markets, healthcare and business regulation.
The BoJ's next policy-setting meeting will be on October 31, where it will publish its economic forecasts.