Abe: It Naturally BOJ Inflation Target Not Reached

Prime Minister Shinzo Abe said that it is understandable if the Bank of Japan failed to meet the deadline to achieve the inflation target, indicating that the current government does not intend to press the central bank to increase monetary stimulus. The rate of consumer inflation restrained due to the impact of falling oil prices, making the BOJ is under pressure to fulfill his pledge in April 2013 and then to push the inflation rate to a level of 2% in less than 2 years. Abe showed confidence that the Japanese economy is still in a solid recovery jalu added that the decline in oil prices continues, the BOJ has almost certainly failed to meet the deadline for 2 years.

Abe said that the decline in oil prices is positive for Japan's economy, and we can accept that the BOJ sales reach the inflation target (within 2 years) has become more difficult. Abe also said the government will not interfere in monetary policy decisions specifically considering himself has full confidence in the BOJ Governor Haruhiko Kuroda to handle policy. The BOJ has pushed back the deadline for his 2-year and now expects inflation to reach 2% in around September next year, projections partly many analysts say is too ambitious given the continued decline in oil prices in recent years. Kuroda has said he would not hesitate to provide additional stimulus if the achievement of the targets difficult. However, some close aides Abe has signaled that further easing would not be welcomed because it will lead to a weaker yen boosted import costs and living expenses.