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Bank of Japan's Path to 2% Inflation: A Journey Far from Over

BOJ Governor Kazuo Ueda signals a long road ahead to meet the central bank's inflation target.

Kazuo Ueda
Kazuo Ueda

The Long Road to Inflation

The Governor of the Bank of Japan (BOJ), Kazuo Ueda, shared his views on Tuesday, stating that there is still a considerable distance to travel before the central bank can sustainably and stably hit its 2% inflation target. Ueda's remark echoes the struggle of central banks worldwide to stimulate economic growth sustainably amid a challenging global financial landscape.

BOJ Policy and the G20 Meeting

Ueda made this significant remark at a news conference following a G20 finance leaders' meeting held in India. His comments put the spotlight on the challenges of economic growth and financial stability, as key financial decision-makers from the world's largest economies gathered to discuss the global economic landscape and their respective monetary policy approaches.

Yield Curve Control Policy: To Tweak or Not to Tweak?

In response to a question about the possible need for the BOJ to adjust its yield curve control policy at its rate review later this month, Ueda did not provide a direct answer. His statement, however, gives some insight into the BOJ's monetary policy trajectory and raises the question of whether future adjustments to the bank's strategies may be needed to achieve its inflation goals.