Japan Policy Makers Hedge Bets on Inflation Target Timeline

After Haruhiko Kuroda was appointed Governor of the Bank of Japan he reiterated his commitment to the Abe government’s 2 percent inflation target and his own 2 year timeline to achieve it.

“Although there may be lots of difficulties, we must achieve the goal and I’m confident we can,” he said at his inaugural news conference after taking the reins of the central bank on Wednesday. “I’m resolved to take every step possible until we can do it.”

Finance Minister Taro Aso in a different press conference did not seem as confident and used a more cautious “considerable time” deadline.

“I believe that it will take considerable time to get out of deflation and move toward inflation, and then push up (prices) to 2 percent,” Aso said at a press conference.

It is interesting to note the skepticism of one of Prime Minister Abe’s closest collaborators regarding the ease of such an ambitious target in a 2 year time frame.

Via Mainichi (Kuroda) and Mainichi (Aso)

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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