TOKYO: Bank of Japan Governor Haruhiko Kuroda has pinned his hopes on Prime Minister SUGA Yoshihide’s policy on digitalization.
“In order to achieve sustainable economic growth, it is essential to reform the economic structure to raise productivity” while balancing measures to contain the novel coronavirus pandemic and those to promote economic activities, Kuroda said in an online panel discussion hosted by the Group of 30, an independent global body of economic and financial leaders from the public and private sectors, on Sunday.
While stressing the importance of coordination between monetary policy and structural reforms, Kuroda noted that Suga, who took office last month, has expressed his government’s intention to work to accelerate digitalization.
The BOJ’s monetary easing will support the Japanese government’s structural reform efforts, he said, adding that a rise in the country’s potential economic growth rate through structural reforms could increase the effectiveness of monetary policy.
Participants in the online discussion also included European Central Bank President Christine Lagarde and People’s Bank of China Governor Yi Gang.