BoJ is committed to maintaining its monetary easing policy as it seeks to sustainably achieve its 2% inflation target, stated BOJ Governor Kazuo Ueda in a parliamentary address.
He acknowledged, “There’s still some distance to sustainably and stably achieve our 2% inflation target. As such, we will patiently maintain our monetary easing policy.”
Ueda explained that the central bank’s strategy is to initiate a positive cycle in which inflation-adjusted wages will start to rise.
However, he also indicated that BOJ anticipates core consumer inflation to dip below 2% target in the latter half of the fiscal year. Despite this projection, Ueda expressed that there remains a substantial degree of uncertainty surrounding the inflation outlook.
One key factor he highlighted is corporate price-setting behaviour, which he stated was “somewhat overshooting expectations.”
