BOJ’s Sakurai says need to stick with current easing framework

(Reuters) – Bank of Japan board member Makoto Sakurai said on Wednesday it is important for the central bank to stick with its current framework for monetary easing because its effects will become stronger over time.

Sakurai also said the BOJ should not easily change its 2 percent inflation target, because it is also used by other central banks.

Sakurai made the comments in a speech to business leaders in Hakodate, northern Japan, according to a text posted on the BOJ’s website.

The BOJ has had to push back the timing for reaching its price target six times since it deployed its massive stimulus program in 2013.

It now hopes consumer inflation will hit the 2 percent target by March 2020, but core consumer prices rose only 0.7 percent year-on-year in August.

The BOJ’s policy board next meets on Oct. 30-31, when it will update its consumer price forecasts.

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