BoJ Member Sato Sceptical of Inflation Targets

Bank of Japan board member Takehiro Sato proposed changing the central bank’s assessment of prices to say that risks are tilted somewhat to the downside, highlighting skepticism within the board that Japan would be able to decisively beat off deflation in a year’s time.

The minutes of the April 30 policy meeting released on Monday showed Sato had also called for changing the wording of the central bank’s price target, suggesting a loosening of BOJ’s commitment to achieving its 2 percent inflation goal by the end of the next fiscal year.

The proposal was rejected by an 8-to-1 vote, with the BOJ maintaining its stance that risks to prices are finely balanced. However, Sato’s views highlight the lingering uncertainty about the price target that could cause the central bank to alter its bullish forecast later in the year.

via Reuters

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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