Bank of Japan Gov. Haruhiko Kuroda pledged Friday to make the best use of the central bank's power to positively contribute to the Japanese economy.
"By bringing out the Bank of Japan's collective power, I'd like to contribute to the development of the Japanese economy from the financial side," Kuroda said during a confirmation hearing at the House of Representatives Rules and Administration Committee, which began on Friday afternoon.
The hearing was conducted due to the proposal to reappoint 73-year-old Kuroda, whose term as central bank chief expires on April 8.
The government plans to reappoint Kuroda as BOJ governor after gaining the consent of both chambers of the Diet. If reappointed, Kuroda's tenure will be extended until April 2023.
Soon after assuming the post of central bank chief in 2013, Kuroda started to implement a massive monetary easing policy to encourage companies to boost things like capital investment. The BOJ poured money into the market through government bond purchases. Interest rates fell to historically low levels and the dollar rose against the yen on the foreign exchange market.
Kuroda's monetary policy has supported the Abenomics economic policy package. Japanese companies, especially export-oriented firms, have seen their performances improve. Tokyo stocks have set record highs for the period following the collapse of the bubble economy.
Kuroda set a 2 percent inflation target for the two-year period from when he took office in 2013, but is yet to achieve it.
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