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Shadow of deflation holds BOJ back despite US action

'Long road ahead' toward 2% inflation target, admits Kuroda

Deflationary mindsets continue to bedevil Bank of Japan Gov. Haruhiko Kuroda.

TOKYO -- Limp inflation has shackled Japan's central bank to maintaining its monetary easing policy, despite the ongoing economic recovery and a tailwind from the U.S. Federal Reserve's rate hike Wednesday.

The Bank of Japan's policy board decided Friday to maintain the existing quantitative and qualitative easing program, leaving policy unchanged for the ninth month running. "It will take time to shift away from deflationary mindsets," Gov. Haruhiko Kuroda said at a press conference.

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