Amid intense debate over the Abe government's inflation target, some officials at the Bank of Japan think the 2 percent goal will probably remain out of reach for the next three years, according to sources familiar with the matter.
The pessimistic view comes as the BOJ prepares for a quarterly outlook report next month that will provide its first estimates for prices and economic growth in the fiscal year that begins in April 2021.
The central bank hasn't started discussions on actual numerical forecasts for the report, which will be released at the end of a two-day policy meeting on April 25, according to the sources. They were speaking in recent weeks, in the lead up to the March 14-15 policy gathering, amid signs that inflation will weaken this year.