BoJ could postpone 2% inflation target

The Japanese Yen plunged to the lowest level since July, hitting 101.35 on the back of better-than-expected data from the U.S., and amid concerns Japanese policymakers would not be able to achieve 2% inflation target within the planned schedule. During the monthly report, Haruhiko Kuroda pledged the central bank is ready to make necessary adjustments to its policy in case risks to the economy threatens his ambitious plans. He also mentioned the pace of growth is in line with analysts projections, even despite a slowdown in the third quarter. However, according to the BoJ's projections the 2% inflation goal is likely to be achieved by the fiscal year to March 2016. Despite Kuroda's confidence, some of the central bank's members have already expressed their concerns the goal would be difficult to reach.

Meanwhile, a poll conducted by Bloomberg showed that 22 of 37 analysts said they expect Kuroda's board altering the objective adopted in April. In addition to that, JPMorgan Chase & Co. is seeing the BoJ adjusting its view on the economy in April or July next year, with the timeframe widening to the fiscal year starting April 2016. Earlier, the BoJ has already admited that risks for the economy are high, and taking into account planned tax hike in April and weak global recovery, further easing can be expected.