BOJ: Risks to economy, prices are skewed to downside

The Bank of Japan (BOJ) pushed back the timing for hitting 2% inflation target and now sees inflation reaching the price target around fiscal 2019, the policy statement showed on Thursday.

Key Points from BOJ’s Quarterly report:

Recent moves in CPI have been relatively weak

Rise in medium to long term inflation expectations has been lagging behind somewhat

Inflation expectations projected to rise as firms gradually raise wages, prices

CPI  likely to continue uptrend, increase toward 2 pct

Projected rate of increase in CPI is lower mainly for the first half of 3 year projection period

Risks to economy, prices are skewed to downside

Momentum toward hitting price target is maintained but not yet sufficiently firm

BOJ to make policy adjustments as appropriate with view to maintaining momentum toward achieving price target