MNI BRIEF: BOJ Closer To 2% Target But Not Achieved - Kuroda

Bank of Japan Governor Haruhiko Kuroda said Japan is getting closer to its 2% price target but it hasn't been achieved yet, he told reporters at a press conference on Friday.

“The median forecasts for the core consumer price index in fiscal 2023 and 2024 were revised up but the impact of high import prices will wane, so it is still far from the achievement of the 2% price target in a stable and sustainable manner,” Kuroda said, commenting after the BOJ ended its two-day meeting with a decision to maintain its policy settings and easing forward guidance.

The board’s median forecasts for the key inflation rate in fiscal 2023 and in 2024 were both revised up to a rise of 1.6%, up from 1.4% and 1.3%, respectively, in July's outlook report.

He emphasized the need to maintain easy policy to achieve price rise along with wage hikes.

As for an exit strategy, Kuroda said that the board members will discuss an exit of easy policy if the 2% price target comes in sight. He said the BOJ would communicate with market players in an appropriate manner. But the BOJ is still far from the phase of considering an exit strategy now as the median inflation forecasts in fiscal 2023 and 2024 are around the mid-1% range.