MNI BRIEF: BOJ's Ueda Says Price Target Timing Difficult

Bank of Japan Governor Kazuo Ueda said on Friday that he cannot predict when the Bank's 2% price target will be achieved and that easy policy will continue for some time.

“If the Bank shows the timing of achieving the target amid high uncertainties, it will increase the risk of causing unexpected conditions in markets," Ueda told lawmakers. Ueda on Wednesday indicated a shift to a new normal away from low interest rates for a prolonged period, which may lead to a tweak to yield curve control (see: MNI BRIEF: BOJ's Ueda Sees Shift To New Normal From Low Rates).

He added achieving the price target at the earliest possible time, a goal made in a joint statement between the BOJ and the government in January 2013, was not designed with a specific date. Ueda also said the underlying price trend will likely strengthen gradually toward the price stability target but the y/y rise in inflation could weaken from the middle of this fiscal year over 2H.