A majority of the Bank of Japan’s board members think it should drop the two-year timeframe for meeting its inflation target, according to people familiar with discussions inside the BOJ.
Board members are concerned that investors may view April 2015 as a binding deadline, fueling speculation that the bank will boost stimulus to meet the goal, said the people, who asked not to be named because talks are private. Any revision will probably come before April and could be as early as this quarter, some of the people said.
Repeated pronouncements by Governor Haruhiko Kuroda that inflation is likely to reach the 2 percent target sometime around the fiscal year starting in April leave room for debate on both the price gains and the time line. Twenty-nine of 33 economists surveyed by Bloomberg News say consumer prices won’t meet the central bank’s forecast and almost half of them expect it to loosen monetary policy further before April.