Economics
Policy Doubts Rise as BOJ's Price Goal Recedes Into the Distance
- Inflation is forecast to remain below 2% target into 2022
- Bank cites ‘high uncertainties’ regarding economy and prices
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The Bank of Japan’s latest forecasts show that even nine years of radical monetary stimulus won’t be enough to achieve 2 percent inflation -- raising doubts about how aggressively it can continue to pursue the goal as policy side effects pile up.
The BOJ, which is already facing calls from lawmakers, investors and the banking industry to be more flexible about achieving the target, said on Thursday that core consumer price gains will average no better than 1.6 percent until at least the fiscal year ending in March 2022.