More from Kuroda: BOJ still wants to achieve 2% inflation target as soon as possible

Author: Justin Low | Category: Central Banks

Further comments by Kuroda on the day

  • Says that there is no change to that commitment
  • Inflation has been picking up but CPI is still below target
  • Inflation is taking longer than expected to accelerate
  • Will not continue current unconventional policy if 2% target is met
  • Sees no need to change joint-statement with government on inflation
As long as inflation remains below the central bank's target, expect the BOJ to carry on with its current policies. And given the current economic trends in Japan, they are not going to be able to meet that target by fiscal year 2019 - in which what was planned/communicated earlier in the year before they removed it.

That means that the BOJ will continue to stay pat but it doesn't rule out potential change in their language if inflation starts to move higher from here - but still I don't see it moving towards the 2% target any time soon, or at least not in any sustainable or meaning manner.

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