BOJ Faces Reality Check

The Bank of Japan (BOJ) has failed to achieve its two percent inflation target ahead of this month’s deadline, but analysts say the fault doesn’t lie with policymakers alone.

“The BOJ needs to face up to and adapt to the reality that the two percent inflation target hasn’t been achieved,” said Totan Research chief economist Izuru Kato over the phone.

In late April 2013, BOJ governor Haruhiko Kuroda pledged that massive quantitative easing would put an end to two decades of deflation, setting an annual inflation target of two percent within two years.