Ueda: Inflation will take time to reach BOJ target

Japan’s trend inflation is likely to rise in the coming period, but the BOJ’s price stability target of 2 percent will take time to be achieved, Bank of Japan (BOJ) Governor Kazuo Ueda said. The central bank has no set timeframe for hitting its 2 percent inflation target because of uncertainty about the price outlook. Ueda’s approach contrasts with that of his predecessor, Haruhiko Kuroda, who implemented a massive asset-buying program in 2013 to push inflation to 2 percent in about two years. “The time it takes for monetary policy to have an impact on the economy can vary greatly depending on the circumstances. So we don’t have any timeframe in mind,” Ueda said on Friday. “Having said that, our basic view is that it will not take more than 10 years. We will still try to hit the target as early as possible,” he told parliament. Ueda also said it was premature to discuss details of an exit strategy from the BOJ's ultra-easy policy, including whether and when the central bank might start selling real estate trust funds (REITs).