Bank of Japan Governor Ueda Cautious on Inflation Targeting Frameworks

Reported 6 months ago

Bank of Japan Governor Kazuo Ueda stated that the BOJ will proceed cautiously with inflation-targeting frameworks, noting unique challenges faced by Japan after years of ultra-easy monetary policy. Ueda highlighted the difficulty of estimating the neutral interest rate accurately in Japan due to prolonged near-zero short-term interest rates, while BOJ Deputy Governor Shinichi Uchida mentioned that anchoring inflation expectations to the 2% target remains a significant challenge despite progress in moving away from zero inflation expectations.

Source: YAHOO

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