Japan Policy Makers Hedge Bets on Inflation Target Timeline

After Haruhiko Kuroda was appointed Governor of the Bank of Japan he reiterated his commitment to the Abe government’s 2 percent inflation target and his own 2 year timeline to achieve it.

“Although there may be lots of difficulties, we must achieve the goal and I’m confident we can,” he said at his inaugural news conference after taking the reins of the central bank on Wednesday. “I’m resolved to take every step possible until we can do it.”

Finance Minister Taro Aso in a different press conference did not seem as confident and used a more cautious “considerable time” deadline.

“I believe that it will take considerable time to get out of deflation and move toward inflation, and then push up (prices) to 2 percent,” Aso said at a press conference.

It is interesting to note the skepticism of one of Prime Minister Abe’s closest collaborators regarding the ease of such an ambitious target in a 2 year time frame.

Via Mainichi (Kuroda) and Mainichi (Aso)

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