Bank of Japan Governor Haruhiko Kuroda said major central banks may have to become more flexible targeting inflation, as they are missing targets due to the price dampening effects of technological innovations and globalisation.

The missed targets and subdued inflation have raised concern over the credibility of central banks' inflation targets, Kuroda said.

Japan's experience shows it is hard to re-anchor inflation expectations once they slide below desirable levels, Kuroda said.

"If missing inflation comes from structural factors such as globalisation and digitalization, central banks should continue examining how best to manage inflation expectations .. within the flexible inflation targeting framework," Kuroda told.

With inflation and wage growth remaining subdued in many countries, Kuroda said central banks must explore ways to use unconventional policy tools to fight the next economic downturn.