Bank of Japan (BOJ) Governor Masaaki Shirakawa on Tuesday said the central bank will continue with powerful monetary easing, as the economy likely to remain weak for the time being.
"The Bank of Japan recognizes it is very important for the economy to overcome deflation as early as possible and return to the sustainable growth path with price stability," Shirakawa told a quarterly meeting of the central bank's branch managers.
He said that there remains a "high degree" of uncertainty concerning the domestic economy, including the European debt problem and aftermath of soured Japan-China ties.
The BOJ governor said the country's exports and industrial production have decreased due to a slowdown in overseas economies, and business sentiment in the manufacturing sectors remains cautious.
But Shirakawa said the economy is likely to return to a recovery path if domestic demand remains stable and overseas economies recover from a deceleration phase.