© Reuters. FILE PHOTO: Bank of Japan Governor Kazuo Ueda speaks at a group interview with media in Tokyo, Japan, May 25, 2023. REUTERS/Kim Kyung-Hoon/File Photo
By Leika Kihara
TOKYO (Reuters) – Bank of Japan Governor Kazuo Ueda said on Friday the central bank did not have a set time frame for achieving its 2% inflation target but that it would strive to hit it at the earliest date possible.
Speaking in parliament, Ueda said the country’s trend inflation was likely to heighten ahead, but that achieving the bank’s 2% target would take time.
He also said setting an explicit time frame for hitting the inflation target was undesirable as doing so could have an unexpected market impact.
“The time it takes for the impact of monetary policy to appear on the economy could move around a lot depending on circumstances. We therefore do not have anytime time frame in mind” in achieving the inflation target, he said.
“Having said that, our baseline view is that it won’t take so long as over 10 years. We’ll still seek to hit the target at the earliest date possible,” Ueda said.
