The Bank of Japan may achieve its inflation target in 2023, as the cost of living has consistently exceeded market expectations this year, according to Takatoshi Ito, a contender to replace Gov. Haruhiko Kuroda in April.
"I’ve been thinking lately that it might be possible to achieve the BOJ’s price target,” Ito said during an online government forum Monday exploring the impact of the 2% price goal as it approaches its 10th anniversary in January. "Inflation is already spreading to a vast range of services and goods.”
Kuroda has credited Ito for teaching him the significance of having a 2% target. Economists see the Columbia University professor as a candidate to either replace Kuroda or one of the deputy governors after the current top brass steps down in the spring.