Abe says BoJ may fail to hit 2% inflation target if economy changes course
2013-04-02 17:46:07
Japanese Prime Minister Shinzo Abe suggested Tuesday that the Bank of Japan may fail to achieve its target of 2 percent inflation if the economy changes its course.
"The economy has it own life. What will happen in the future is quite unpredictable," Abe told a Parliamentary committee.
He said therefore, there can be instances when BoJ fails to attain the inflation target. However, Abe stressed on the need for BoJ to take up bold monetary easing to achieve the target.
Speaking before the Parliamentary committee, Bank of Japan Governor Haruhiko Kuroda today reaffirmed his commitment to end deflation and attain 2 percent inflation in two years.
He, however, acknowledged that reversing 15 years of deflation is not an easy task. The central bank will use all available options to obtain the target, he told lawmakers.
Kuroda will chair his first Policy Board meeting on April 3-4. Markets expects the new governor to ease monetary policy further to beat deflation and stimulate economic growth.