A former BOJ official said the bank's decision to drop the inflation target time frame shows that the bank is losing confidence in its price outlook and may mean that it may remain in its easing policy for years to come.
The Bank of Japan has removed any reference of a timeframe to meet the inflation target of 2% in a surprise move that may aim to keep expectations of further monetary stimulus. The bank also said that inflation would reach 1.8% in 2019 and 2020, meaning that inflation would not reach its target for another three years.
The Bank of Japan has repeatedly said it is in no hurry to follow in the footsteps of other central banks by tightening monetary policy. But some policymakers complained about rising costs, such as profits received by banks from near-zero interest rates.
