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23 Feb 2015
BOJ can halve the inflation target – Japan’s Hamada
FXStreet (Mumbai) - Koichi Hamada, adviser to Japanese PM Abe, was on the wires today saying that the Bank of Japan (BOJ) could halve its 2% inflation target as a sharp fall in the energy prices drags down the CPI.
In an interview with Reuters, he said the BOJ could cut the target to 1% and extend the time frame for achieving the target to three years from the current two. “It was difficult to predict crude oil prices would decline by 50% and it is natural for the BOJ to reconsider its inflation target”, he said.
Moreover, such a revised view from the Bank of Japan would mean less need for further monetary easing; something that the BOJ members have been considering lately.
In an interview with Reuters, he said the BOJ could cut the target to 1% and extend the time frame for achieving the target to three years from the current two. “It was difficult to predict crude oil prices would decline by 50% and it is natural for the BOJ to reconsider its inflation target”, he said.
Moreover, such a revised view from the Bank of Japan would mean less need for further monetary easing; something that the BOJ members have been considering lately.