The Bank of Japan has maintained today (26 April) that it will meet its two per cent inflation target by 2015.
During a policy meeting, board members themselves appeared divided over the inflation figure, with some predicting consumer prices will not rise at half the rate they set as a target earlier this month.
In an statement the Japanese central bank only said that it “will conduct money-market operations so that the monetary base will increase at an annual pace of about 60 trillion to 70 trillion yen ($610 billion to $710 billion)", which is unchanged from the previous target.
Bloomberg reports Bank of Japan governor Haruhiko Kuroda’s faith in the current monetary policy to end over a decade of deflation has been met with predictions of failure from former central bankers and ex colleagues from his Finance Ministry days.
Should consumer prices continue to fall, policy makers could potentially come under more pressure to expand the stimulus packages in place.
By Claire Archer