Bank of Japan may consider flexible time frame for 2% inflation target
The Wall Street Journal reports that doubts that instead of taking more action to achieve its 2% inflation target, the Bank of Japan will highlight the flexible nature of its time frame for hitting the target.
That’s hawkish and could add further selling pressure to USD/JPY.
Signaling greater flexibility in the interpretation of the bank’s time frame of “about two years” would likely prompt investors and economists to re-calibrate their views on what policy action the bank might take in the future.
Suggesting that the BOJ faces less time pressure than generally believed by investors could help prevent undue speculation for early policy action that might otherwise build up should price data prove sluggish over the coming months.
Update: And now USD/JPY has crashed down to 108.04 with corporates said to be big buyers at the figure.
