The Bank of Japan holds off on expanding its massive stimulus programme while pushing back the expected timing for hitting its 2 percent inflation target by around six months. Meg Teckman reports.
Bank of Japan holds steady on policy, pushes back inflation timeline
The Bank of Japan keeps policy as-is on Friday (October 30) but pushes back the timing on its inflation target.
The two percent consumer inflation goal was to be achieved sometime between April and September next year.
But has now delayed that to the second half of the 2016 fiscal year.
BOJ governor Kuroda remains confident.
(SOUNDBITE) (Japanese) BANK OF JAPAN GOVERNOR, HARUHIKO KURODA, SAYING:
“We won’t hesitate to make the necessary policy adjustments in order to achieve the price goal as quickly as possible, and I don’t think there are limits to our policy options.”
Data out ahead of the board meeting showed household spending slid in September and consumer prices fell for a second month in a row compared to last year.
Giving analysts more worries about the possibility that Japan slipped into a recession in the third quarter.