Bank of Japan Board Member Sayuri Shirai said unprecedented easing could continue beyond next year and downplayed the central bank’s optimism that inflation would reach its target in fiscal 2015.
Shirai said her outlook for the economy and prices assumes that monetary easing “will continue during and beyond 2015 under the current framework” to achieve the goal. “Clear judgment on the timing to achieve 2 percent in a stable manner can be made only after examining the effects of the second round of the consumption tax hike,” planned for October 2014, she said in a speech today in Naha, Okinawa.
Today’s comments are the first time a BOJ policy board member has stated a specific minimum timeframe for the bank’s unprecedented easing. Governor Haruhiko Kuroda has said the bank will continue easing as long as is necessary to achieve the target of stable 2 percent inflation.