Reuters

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda on Tuesday reiterated the central bank's resolve to maintain its massive stimulus program until inflation moved stably above its 2 percent price target.

 

He also said inflation was likely to gradually accelerate towards 2 percent due to improvements in the output gap and inflation expectations.

 

"Japan's economy is expected to continue expanding moderately in the future," Kuroda said in a speech at a quarterly meeting of the central bank's regional branch managers.

 

After three years of heavy asset buying failed to drive up inflation, the BOJ revamped its policy framework last year to one capping long-term interest rates from that targeting the pace of money printing.

 

(Reporting by Stanley White; Editing by Chang-Ran Kim)