Central Bank of Japan’s Ueda Highlights Risk of Inflation Falling Below Target
The Bank of Japan’s (BOJ) Deputy Governor Masayoshi Ueda has warned of the risk of inflation falling below the central bank’s target. Ueda’s comments come as the BOJ is preparing to review its monetary policy in the coming months.
BOJ’s Monetary Policy Review
The BOJ is set to review its monetary policy in the coming months. The review is expected to focus on the BOJ’s inflation target, which is currently set at 2%. The review is also expected to consider the BOJ’s asset purchase program, which has been in place since 2013.
The BOJ has been under pressure to take action to boost inflation, which has been stuck below the 2% target for several years. The central bank has been reluctant to take more aggressive action, citing concerns about the potential impact on the economy.
Ueda’s Warning
In a speech on April 12, Ueda warned of the risk of inflation falling below the BOJ’s target. He noted that the central bank’s asset purchase program has been effective in boosting inflation, but that it has not been enough to reach the 2% target.
Ueda also warned that the BOJ’s current policy could lead to a situation where inflation falls below the target. He noted that this could lead to a situation where the central bank is unable to achieve its inflation target.
BOJ’s Response
The BOJ has responded to Ueda’s comments by reiterating its commitment to achieving its inflation target. The central bank has also said that it will continue to monitor the situation and take appropriate action if necessary.
The BOJ has also said that it will consider additional measures to boost inflation if necessary. These measures could include further asset purchases or other measures to stimulate the economy.
Inflation Outlook
The outlook for inflation remains uncertain. The BOJ’s asset purchase program has been effective in boosting inflation, but it has not been enough to reach the 2% target.
The BOJ is also facing headwinds from the global economy. The U.S.-China trade war and other geopolitical tensions have weighed on global growth, which could further dampen inflation.
Conclusion
The BOJ’s Deputy Governor Masayoshi Ueda has warned of the risk of inflation falling below the central bank’s target. The BOJ is set to review its monetary policy in the coming months, and Ueda’s comments could influence the central bank’s decision. The outlook for inflation remains uncertain, and the BOJ will need to take additional measures if it is to reach its inflation target.