BOJ Kiuchi: Japanese Probably Will Not Reach Target Inflation Up to 2 1/2 Years

Bank of Japan board member, Takahide Kiuchi said Thursday that Japan is not likely to see inflation reaching the central bank's target level of 2% in the next 2 1/2 years because consumer spending is still weak and the export sector was hurt by a slowdown in China.

The former market economists also warned that the Asian economies will probably see a very slow growth because of the suffering of China is large enough and also because US consumer spending is still sluggish, it is likely to make a rebound in the Japanese economy is still in the moderate level.

However Kiuchi, which is one of the BOJ's nine board members to be aware of the increased cost BOJ stimulus that has seen radical, by placing a single financial proposal to reduce the bank's asset purchase and allow the policy to have plenty of time to reach the target of 2%.

Kiuchi in a speech to businessmen in Aomori said that consumer inflation will likely not reach the level of 2% even in the fiscal year ending March 2017.

He added that I think the target of 2% slightly above the level consistent with the growth potential of Japan at this time. It is difficult to achieve the target price unless BOJ monetary effort is accompanied by structural reforms to improve productivity in the country.

Japan's economy was sluggish and might only be a moderate rebound in the future given the still sluggish exports to Asia, added Kiuchi.