BOJ Policymaker Opposed Deletion of Projection for 2 Pct Inflation

June 20, 2018

Tokyo- A Bank of Japan policymaker was negative about the removal of a projection for when inflation would reach the central bank's 2 pct target, from a quarterly report, minutes of the bank's April policy meeting showed on Wednesday.

The member of the BOJ's Policy Board expressed concern that the deletion "could weaken the effects of the commitment" to the inflation target, according to the minutes of the April 26-27 meeting.

The projection was deleted from the quarterly Outlook for Economic Activities and Prices report that the BOJ released following the meeting.

Previous versions of the report had stated that year-on-year growth in the country's core consumer prices, excluding fresh food prices, was likely to reach 2 pct "around fiscal 2019."

Although the member was not identified in the minutes, the BOJ noted in a policy statement released after the meeting that board member Goshi Kataoka insisted that the bank should specify the projected timing of inflation reaching 2 pct.

Kataoka, who joined the policy board in July 2017, also stressed the need for the BOJ to clarify its readiness to take additional easing steps if a delay occurs in achieving the inflation target, according to the policy statement.

The minutes showed that BOJ board members shared recognition that prices are expected to be exposed to greater downside risks than upside ones in fiscal 2019 and later.

Many participants of the meeting mentioned the need to pay "due attention" to protectionist U.S. trade policies and possible backlashes from other countries, according to the minutes. Jiji Press