MNI INSIGHT: BoJ To Keep 2% Timeframe; To.......>

BOJ: MNI INSIGHT: BoJ To Keep 2% Timeframe; To Stand Pat On Policy

- The current pick-up in Japan's inflation rate is slower than Bank of Japan

officials were expecting earlier this year, but the BOJ board will keep the

estimated timing of hitting its 2% price target at "around fiscal 2019" when its

two-day meeting ends on April 27, MNI understands.

- "The picture is unchanged that the economy is recovering as (officials)

expected but inflation rates are slow to respond to an economic recovery. But

the momentum toward achieving the 2% price target is maintained," a person

familiar with BoJ thinking said.

- The source added that BOJ officials are focused on how inflation rates will

accelerate in the coming months following corporate annual price revisions and

wage hikes.

- Meanwhile, BOJ officials are vigilant against a stronger yen, which could

quickly dampen stock prices and sentiment, undermining the virtuous cycle from

income to spending.

- (MNI - For Full Story See Main Wire At 07:40 BST 04/18)