Bank of Japan governor Haruhiko Kuroda said a stimulus policy introduced a year ago had achieved its goal of boosting the real economy, lifting growth and ending deflation but said a 2 per cent inflation target in two years could take more time to achieve.
He said the ultra-easy monetary quantitative and qualitative easing policy introduced last April when the bank pledged to double base money via asset purchases to accelerate consumer inflation to 2 per cent in roughly two years had attained its goals.
"One year has passed ... the policy has been having the intended effects leading to an improvement in financial markets, the real economy, prices," Kuroda told the 17th world congress of the International Economic Association held in Jordan.
On whether it was possible to meet the two-year inflation target, one year into the stimulus plan, Kuroda hinted it could take longer.
"When the Bank of Japan introduced the easing we declared we would … achieve a 2 per cent inflation target basically within two years," Kuroda said.
"The policy will be maintained and will be continued until we achieve the 2 per cent inflation target and also maintain a 2 per cent inflation in a sustainable manner so it may take more than two years and anyway we are only half way," Kuroda said
The governor said the "large-scale monetary easing" had led to peoples' inflation expectations rising on the whole.
Excluding the effect of the tax increase, inflation accelerated to 1.5 per cent in April compared with minus 0.5 per cent year on year excluding fresh food in March last year, Kuroda said.