Bank of Japan chief Kazuo Ueda says he is still not confident the nation can attain the central bank's 2 percent inflation target on the back of wage growth, amid growing speculation the BOJ is nearing a decision to scale back its powerful monetary easing policy.
Bank of Japan Governor Haruhiko Kuroda refused in 2013 to water down the central bank's commitment to attaining 2 percent inflation in "about two years," brushing aside worries among some board members about the ramifications of missing the target, minutes of the meeting show.
The Bank of Japan can start raising interest rates from early 2024, given that inflation will likely remain above the central bank's 2 percent target and wage dynamics are also changing, the Organization for Economic Cooperation and Development says
Bank of Japan Governor Kazuo Ueda indicated on May 25 that the central bank may scale back its monetary easing toward an eventual exit, even when the inflation rate is below its 2 percent target, noting that its "sustainable and stable" rise is important.
Bank of Japan Governor Kazuo Ueda on Friday warned of the "extremely high" cost of premature monetary tightening that would dampen prospects of attaining a stable 2 percent inflation rate, as he made his case for persisting with the current ultralow rate policy.