Osaka, Japan., October 14, 2015 – (PressReleasePoint) – According to Japan’s Mitsui Credit Global, Haruhiko Kuroda, the Governor the Bank of Japan (BoJ) has moved to dampen speculation over the likelihood of a fresh round of quantitative easing at this month’s meeting of the central bank’s policymaking committee.

Speaking during an interview at the International Monetary Fund meeting in Peru, Mr. Kuroda said that Japan’s inflation rate was at a level consistent with the central bank’s expectations.

Core consumer price inflation has, to all intents and purposes, become the most important indicator for the effectiveness of the BoJ’s monetary policy. August’s reading showed that consumer prices contracted 0.1% in August following a flat reading in July reflecting the impact of falling energy prices.

An analyst at Mitsui Credit Global said, “The flat reading in July and the contraction in August have heightened fears that the central bank will miss its target of creating 2% inflation by 2016.”

Quantitative easing is a central pillar of Abenomics, the name given to Prime Minister Shinzo Abe’s economic plan to pull Japan out of a 20-year period of deflation. However, recent sales tax hikes have contributed to a falloff in spending as Japanese consumers tighten their belts.

“There’s a chance that Japan could fall into a technical recession in the third quarter and, if that happens, it would just add to deflationary pressure. It’s not something Mr. Kuroda would want to happen on his watch but he seems reasonably confident that his strategy will play out,” said the Mitsui Credit Global analyst.

The firm says it has advised clients to remain long Japanese equities despite recent volatility citing the likelihood of further stimulus from the BoJ before the end of 2015.