Bank Of Japan leaves policy rates on hold, raises view on economy.
Japan’s timetable for achieving stable inflation has again been extended by a year.
The Bank of Japan on Thursday pushed back the date when it expects 2% inflation—the sixth time it has been postponed under Governor Haruhiko Kuroda. The central bank now sees the target being reached by March 2020, five years after Mr. Kuroda’s initial timing.
The BOJ also kept its main interest rates on hold and looks set to dig in for some time with its ultraloose policy while the Federal Reserve and some other major central banks raise rates and the European Central Bank hints at scaling back its stimulus.
Mr. Kuroda, whose term ends next year, said the frequent inflation revisions were regrettable but wouldn’t affect the BOJ’s credibility.
“Central banks in the U.S. and Europe have also pushed back the timing to achieve their inflation targets a few times. There are some factors that are just too difficult for a central bank to control or predict, such as falls in oil prices,” the governor told a news conference.
However, many economists said they think even the BOJ’s latest forecasts are unrealistic.
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