On Thursday, Takahide Kiuchi, Bank of Japan board member told that he doesn’t expect inflation to hit a stable 2% by the end of March 2019. The given forecast could be backed up by low wage hikes as well as decreasing consumption.
Delivering a speech in the city of Kanazawa, Takahide Kiuchi told that the underlying price trend is going to remain stable quite below the BOJ's 2% inflation target but it’s not hurting economic activity because it’s mostly in sync with what companies as well as households expect.
Kiuchi appeared to be one of four board members to vote against the governor's offer to impose a controversial negative interest rate policy in January. He told that the expanded easing program has boosted financial market volatility, which is a decisive factor in the cautious investment as well as spending.
The extra effects of quantitative and qualitative easing have been edging down, especially considering that the continued descend in long-term real interest rates, that’s considered to be the key source of policy effects, has already suspended.