BOJ's Kuroda: Not thinking about lowering 2% inflation target
Further comments on the day by BOJ governor, Haruhiko Kuroda
The issue with Japan is that they are much closer to disinflation/deflation than they are towards achieving any form of sustainable rise in inflation pressures.
Granted that the demographics of an aging population isn't helping, there has been plenty of talk about whether or not the BOJ should consider reassessing the 2% inflation target relative to the current predicament faced by the country.
The other issue is that of pride - for the most part. If the BOJ does abandon its 2% goal, it basically means that they have thrown in the towel in their battle over the past decade or so in trying to get inflation back on track.
Not only that, it will also be a blow to Japanese prime minister Abe's credibility and his infamous Abenomics policy in reviving the economy.