TOKYO, Sept. 20 (Xinhua) -- Japan's central banker Haruhiko Kuroda said Friday that the country's economy is "smoothly" achieving the central bank's inflation target of 2 percent to beat prolonged deflation, according to local media.
Referring to progress of current monetary easing by the Bank of Japan (BOJ), Japan's central bank, Kuroda said here in a speech that "Japan's economy has been proceeding smoothly along a path toward achieving the price stability goal of 2 percent," reported Japan's Kyodo News.
He said achieving the target temporarily is not sufficient and that it is important to maintain the 2 percent inflation in a stable manner, said Kyodo.
But the governor also said that the government has to establish "a sustainable fiscal structure" so as to stabilize Japan's economic growth, adding it is a strong expectation of the central bank.
Kuroda said Japan's current economy recovery is driven by domestic demands such as consumer and public spending.
To keep up with the recovery, it is important for exports, production and capital investment by the manufacturing sectors to improve, said the central banker.