Bank of Japan Gov. Haruhiko Kuroda expressed confidence Monday that the 2 percent inflation target will be achieved around fiscal 2018, saying a pickup in oil prices and possible wage growth could help push up prices.
Kuroda, however, also warned there are downside risks to consumer prices in the country, given the uncertainties in the global economy. His warning indicates that the central bank is waiting to see what happens from Republican Donald Trump's victory in the U.S. presidential election.
"Despite the recent weakness in price developments, the momentum toward achieving the price stability target of 2 percent seems to have been maintained," Kuroda said in a speech at a meeting of business leaders in Nagoya.