Investing.com - Bank of Japan board member Takahide Kiuchi Thursday said he does not expect inflation to reach a stable 2% by the end of March 2019, citing sluggish consumption and low wage hikes.
Speaking in the city of Kanazawa, he said the underlying price trend will remain "stable" below the BOJ's 2% inflation target but that's not hurting economic activity as it is largely in sync with what firms and households expect.
Kiuchi was one of four board members to vote against the governor's proposal to adopt a controversial negative interest rate policy in January. He said the expanded easing program has increased financial market volatility, a factor in the cautious investment and spending.
"The additional effects of QQE (quantitative and qualitative easing) have been diminishing, given that the continued decline in long-term real interes rates, which is considered to be the main source of policy effects, already has come to a halt," he said.