Bank of Japan policymakers said they should stick with their current policy framework and had reason to be optimistic about consumer prices because measures of inflation expectations have stopped falling, minutes of the central bank's July 19-20 meeting showed on Tuesday.
The BOJ kept monetary policy on hold at the meeting in July but pushed back the timing of its inflation target for the sixth time since Governor Haruhiko Kuroda launched quantitative easing in 2013.
Policymakers' optimism about achieving their inflation target is unlikely to quell concern that BOJ needs to change its policy stance because it has so far failed to boost prices.
A few members argued Japan's jobless rate and output gap needed to improve even further to build the economic momentum needed to reach the BOJ's 2 percent inflation target, the minutes showed.
The BOJ now expects inflation to reach 2 percent sometime in the fiscal year ending in March 2020. The BOJ has postponed the price target timeframe six times since Kuroda launched his massive asset-buying programme in 2013.
Source: Bloomberg Pro Terminal
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