Bank of Japan probably will not meet the target date to achieve the inflation target and will continue to apply incentives for several more years , said the board of the bank , questioning his optimism head Haruhiko Kuroda .
Sayuri Shirai comments concerned how long the BOJ will maintain its current program to mitigate and emphatically expressed skepticism about Kuroda forecasts that inflation will reach the target level of 2% until the following spring .
” Very likely” that inflation will reach the 2% target in the fiscal year that ends in March 2017 – Shirai said during a press conference after his speech to business leaders on the island of Okinawa in southern Japan .
Forecast Shirai , a former professor of political studies , different from the prevailing point of view of the central bank , however, is not very far from the one held by many market participants .
The Bank of Japan plans to reduce softening after reaching the “stable” 2% inflation. However Shirai noticed that the decision should be taken , being able to evaluate the effect that will tax increase scheduled for October 2015 .
She also stressed that the year may need to weaken the effect caused by an increase in tax from 8% to 10%. This caused a variety of assumptions about whether she would prefer to leave unchanged mitigation measures before the end of 2016 . Sayuri Shirai added that its price forecasts suggest that mitigation policies will continue ” throughout and after the end of fiscal year 2016 .”
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