Bank of Japan policy board member Naoki Tamura said Wednesday that the central bank’s goal for sustainable 2% inflation appears to be finally in sight after a decade of monetary easing.
“I expect to have further clarity [on whether the bank can achieve the goal] around the January-March quarter next year based on the momentum for wage growth at that point and price data for the latter half of the year,” he said at a meeting with business leaders in Hokkaido.
In late July, the BOJ raised its cap for the yield on 10-year Japanese government bonds to 1% from 0.5%.
The 10-year yield is unlikely to hit 1% immediately, Tamura said, and promised to stop excessive moves in yields by stepping up bond purchases.