BOJ Achieved 2 Percent Inflation Target
The Bank of Japan declared on October 30 th that it hit the target of 2 percent inflation, the main goal of the bank’s monetary policy which had been set in January 2013. Although the bank hoped it to be achieved within two years, it actually took nearly fourteen years, due to its inability to change people’s mind obsessed with deflation. The bank is still aiming at further increase of interest rate as the price inflation imposes upward pressure on Japan’s economy. In the monetary policy meeting held on October 29 th and 30 th , the Bank of Japan approved its Outlook for Economic Activity and Prices . “Underlying CPI inflation is at a level that is generally consistent with the price stability target of 2 percent, and is expected to remain at around that level” says the outlook. The BOJ Governor, Kazuo Ueda, asserted that BOJ’s policy stimulated the economy and a mechanism of mutual rise in wage and price revived. However, the road to 2 percent inf...