BOJ’s Kuroda Says Inflation Goal To be Reached in Late 2014 or Early 2015

Bank of Japan Governor Haruhiko Kuroda on Monday admitted that achieving an inflation target of 2 percent is “very ambitious” but said the central bank is on its way to achieving the goal in late fiscal 2014 or early fiscal 2015 as its ultraeasy monetary policy has been producing its intended effects.

“The 2 percent inflation target is a very ambitious target, given the fact that the Japanese economy has suffered from 15 year-long deflation,” Kuroda said at the Paris Europlace International Forum held in Tokyo.

But he said the bank is on track to achieve the goal, saying, “We expect the inflation target of 2 percent could be reached sometime in late fiscal 2014 or early fiscal 2015,” noting that the BOJ’s monetary easing measures have so far been having the intended positive effects on financial markets and the real economy.

“Although there is a long way to go to reach the 2 percent inflation target…we have already achieved some positive inflation rates,” Kuroda said, citing that the nation’s consumer prices, excluding fresh foods, rose 0.7 percent in September. “We expect the inflation rate to continue to accelerate,” he added.

The BOJ chief also expressed the view that consumer prices are likely to reach 1 percent at the end of this fiscal year in March.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza