AP News

Japan's central bank chief vows to end deflation

TOKYO (AP) — The newly installed governor of Japan's central bank, Haruhiko Kuroda, says he plans to whatever he can to end deflation and break the economy out of the doldrums.

Kuroda said Thursday after a meeting with Prime Minister Shinzo Abe that he had reiterated his pledge to "do everything we can to get the economy out of deflation."

Abe and many other experts view years of falling prices, which tend to discourage corporate investment, as a key reason for Japan's economic stagnation over the past two decades.

Kuroda took office on Wednesday, succeeding Masaaki Shirakawa.

A Finance Ministry veteran who most recently headed the Asian Development Bank, Kuroda has firmly backed Abe's economic strategy, including setting a 2 percent inflation target which he says he hopes to meet within two years.

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