When Bank of Japan Gov. Haruhiko Kuroda met the press last week after the BOJ's policy meeting, he effectively admitted the central bank may miss what the market perceives as its deadline of next fiscal year for achieving 2 percent inflation to revive the economy.
But Kuroda also downplayed concern about that prospect, underscoring the bank's commitment to addressing what he dubs people's deflationary mindset by enhancing their inflation expectations, while also expressing hope that upcoming labor negotiations will yield decent wage increases.
The current BOJ policy is to "alter public expectations" whatever it takes, a person close to the bank's thinking said, adding that to that end, it will even "ignore" whether its policy is seen as balanced or reasonable.