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The Japan economy has been well-balanced by both external and domestic demand, Bank of Japan Governor Haruhiko Kuroda said Friday.
The governor said the sustainability of the expansion is high.
He noted that households are accepting price increases amid improvement in employment and income growth.
If the increase in prices broaden, medium- and long-term inflation expectations will steadily rise, Kuroda said. He reiterated that inflation will accelerate toward its 2 percent inflation target.
Further, Kuroda said the bank will continue to pursue its strong monetary easing to achieve price stability.
