Ueda: It will take time for inflation to reach BOJ’s target

Bank of Japan Governor Kazuo Ueda said the central bank does not have a set time frame to reach its 2 percent inflation target due to uncertainty over the price outlook.

Ueda’s approach contrasts with that of his predecessor, Haruhiko Kuroda, who in 2013 implemented a massive asset-buying program to push inflation to 2 percent in about two years.

“The time it takes for the impact of monetary policy to emerge on the economy can move a lot depending on circumstances. Therefore, we don’t have any time frame in mind,” Ueda said on Friday.

“Having said that, our basic view is that it won’t take more than 10 years. We will still try to hit the target as early as possible,” he told Parliament.

Ueda also said it’s premature to discuss the details of an exit strategy from the BOJ’s ultra-lax policy, including whether and when the central bank can start selling real estate trust funds (REITs).