"I don't think hitting the 2% target in about 2 years has become more difficult. I also don't see the need to review the target and have no intention of reviewing it."
- Haruhiko Kuroda, BoJ Governor
Confident in reaching the inflation target as planned? Since the announcement of the unprecedented stimulus programme in April, more and more analysts have been expressing their concerns the threshold will not be reached according to the schedule, taking into account global headwinds and domestic downside risks. Nonetheless, on Monday BoJ Governor Haruhiko Kuroda pledged to adjust monetary policy if needed in order to achieve its 2% inflation target and revive the world's third largest economy. The Japanese Yen plunged to the lowest level since May against the greenback and plummeted to a five-year low against the Pound.
Kuroda also mentioned that the currency exchange market is considered as stable, which is vital for any economy and its expansion. More Yen depreciation, however, is welcomed by the central bank in terms of reaching its price level and boosting exporters' profits. Meanwhile, the Governor began stressing the point that the BoJ would act without any hesitation in early November as some of the policy members called for a closer watch on factors that are weighing on the economic performance. Also given the upward bias in the CPI data so far, a safety margin of about 1% is crucial for the BoJ, which justifies its target to boost consumer prices to stable 2% and keep it around this benchmark level in the future.
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