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.