The inflation target means a monetary policy that a central bank establishes a certain range and keeps the inflation rate in the range. This monetary policy is to overcome deflation in Japan. The Bank of Japan aims to keep the rate in 2% in 2013. However the target is not achieved now. Haruhiko Kuroda, Bank of Japan Gov, gave the statement that the central bank may postpone the date for achieving the target to 2018 in Bloomberg Television. The postponement signal the BOJ would fail to achieve its own target during Kuroda’s term which ends in April 2018. He said he will continue their his easing in coming months and years to achieve 2% inflation, in the recent interview.
Opinion
The Japan economy has been down for several years. I think the cause is long-standing deflation. Kuroda set the inflation target to pull out of deflation but the monetary policy is not effective fully now. Is it impossible to achieve the target? I found the date that foreign countries such as British and Australia set each inflation targets and they attain the objective. However, their targets are to prevent excessive inflation while Japanese target is to overcome deflation. It is said that no country could exit from deflation with the inflation target.
In conclusion, BOJ should take another way because I don’t think the inflation target will be achieved. I hope Japanese economic will recover and stabilize.