Washington, Nov. 6 (Jiji Press)–Bank of Japan Governor Kazuo Ueda on Friday expressed commitment to keeping Japan’s underlying inflation rate, excluding temporary factors, at around the central bank’s 2 pct target. During a conversation with International Monetary Fund Managing Director Kristalina Georgieva at the day’s IMF event in Washington, Ueda said the BOJ expects underlying inflation to stay at around 2 pct but sees “some upside risks.” It is necessary to keep the rate at around 2 pct “for years to come through appropriate adjustment of monetary policy,” Ueda said. Noting that prices and wages are rising at broadly consistent rates, Ueda said that the BOJ is still unsure about whether the economy “could stay in that equilibrium for a very long time to come.” “I’d say 2 pct inflation hasn’t quite become a social norm yet,” he added. At its monetary policy meeting through Oct. 30, the BOJ concluded for the first time since adopting its 2 pct inflation target in January 2013 that underlying inflation had reached the target. END [Copyright The Jiji Press, Ltd.]
