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354888
Thu, 01/22/2015 - 00:42
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BOJ Kuroda Indicates Possible Delay in 2 Pct Inflation

Tokyo, Jan. 21 (Jiji Press)--Bank of Japan Governor Haruhiko Kuroda on Wednesday indicated a possible delay in the achievement of the BOJ's 2 pct inflation target. There is no change in the central bank's view that inflation will likely reach 2 pct in a period centering on fiscal 2015, starting in April, Kuroda told a regular news conference. But given the current wild swings in crude oil prices, the achievement of the target may go "a bit outside" the period, Kuroda said, noting the possibility that the inflation target may not be met by the end of fiscal 2015. The comments came after the BOJ earlier in the day slashed its estimate for growth in the core consumer price index, excluding fresh foods, for fiscal 2015 to 1.0 pct from 1.7 pct. Excluding the impact of a consumption tax increase in April last year, the core CPI posted year-on-year growth of 0.7 pct in November, falling short of one pct for the second consecutive month, according to the latest government data. "The core CPI's growth may slow down further," Kuroda said. But he stressed that cheaper oil is good for the Japanese economy and could help push up prices in the long term. There is little concern that people's mindset will turn deflationary again, according to Kuroda. "We will adjust (monetary policy) without hesitation" if it becomes clear that the BOJ cannot hit its inflation target, the BOJ leader also said. SMBC Nikko Securities Inc. chief economist Junichi Makino said crude oil prices are falling more steeply than they were when the BOJ carried out its latest monetary stimulus action in October. The BOJ will be face criticism for inconsistency if it does not ease its policy further soon, he said. In October, the BOJ expanded its asset-purchase program, saying that drops in crude oil prices could rekindle deflationary sentiment among the public. END

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