Concerns over but BOJ’s ability to achieve their inflation target

Concerns over but BOJ’s ability to achieve their inflation target

After a one year of adding the unprecedented monetary stimulus stance by The Bank of Japan  to support the world’s third largest economy to fight the deflation and reach the 2 percent inflation target.

BOJ’s Governor Kuroda Haruhiko still supports the bank board members to persuade most of them that they have the power and the tools to achieve the 2 percent inflation target.

Moreover, the nine majority board members disagree with the Governor’s view, as they see that flooding the economy with cash is sufficient to reach the 2 percent gains in consumer prices.

At the same time, board members thinks that Japanese economy needs further potential economic growth support to reach its target in line with the added monetary easing plans.

Japanese companies and investors are expecting more and more monetary easing measures as they can feel its reflected support with their investments, while the BOJ refrained during its last board meeting from adding stimulus.

Kuroda confirmed recently that the bank will keep adding stimulus pack till inflation target is reached, while concerns were raised over the bank’s ability to reach it in its timeline.