Sapporo International: Bank of Japan Faces Growing Concern

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Sapporo International Bank of Japan Faces
Growing Concern
1888PressRelease - Sapporo International BoJ
remains confident that target inflation will be
reached by end of 2020 fiscal year. Sapporo
International According to the minutes of a
meeting held by the central bank on Tuesday, the
Bank of Japans policymakers stated that they
plan to adhere to their existing policy and that
there was ample reason to be confident about
consumer prices given that gauges of inflation
forecasts are no longer decreasing. In a
previous meeting in July, the BoJ did not discuss
monetary policy but adjusted the timing of its
inflation target for the sixth time since the
launch of the central banks massive quantitative
easing program by Governor Haruhiko Kuroda in
2013. Policymakers confidence about reaching
their inflation target is not likely to quash the
belief that the Bank of Japan should amend its
current policy due to the fact that it has, thus
far, failed to raise consumer prices. Although
the minutes of the meeting revealed that several
members were of the opinion that the rate of
unemployment and output gap would have to improve
even more in order to reach a level where the
Bank of Japans 2 percent inflation target could
realistically be achieved, the majority of
members felt that the year on year rate of growth
would probably remain on an upward curve. The
members agreed that the expectation of an
increase to 2 percent inflation was reasonable.
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An analyst at Tokyo, Japan based wealth
management firm Sapporo International stated that
the BoJ now anticipates that inflation will reach
the targeted 2 percent at some point in the
fiscal year that ends in March 2020. Since the
commencement of Governor Kurodas asset buying
program 4 years ago, the BOJ has delayed the
target time frame six times. The Bank of Japan
will issue new forecasts after its meeting at the
end of this month. The central bank could face
pressure to formulate a new strategy or ease
policy further if it decides to delay the timing
of its price target again. http//www.jpn-media.c
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