The Bank of Japan should set a more achievable inflation target to avoid getting stuck with endless stimulus, according to a former deputy governor.
¡°It¡¯s about time the BOJ set a realistic price goal rather than rigidly targeting 2%,¡± said Hirohide Yamaguchi, who left the bank in 2013, just before Gov. Haruhiko Kuroda took the helm. ¡°We can¡¯t see the prospect of inflation reaching it, even after more than eight years.¡±
Yamaguchi, the right-hand man under Kuroda¡¯s predecessor Masaaki Shirakawa, said the central bank can instead accept a lower inflation goal and could start winding down stimulus even if the yen strengthened thanks to improved resilience among firms.
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