The Bank of Japan has not decided whether it will introduce a specific inflation target after it ends its ultraeasy monetary stance, BOJ Gov. Toshihiko Fukui said Friday, after the Policy Board announced the policy would continue.
"What we will do after correcting the framework of the quantitative monetary policy is open right now. Policy Board members will continue to discuss the issue and decide what suits the Japanese environment," Fukui told a news conference when asked what kind of a target the BOJ will adopt after it alters the policy.
Several Policy Board members have advocated introducing an inflation target and some politicians have urged the central bank to target a specific level of national growth rate after it ends the quantitative monetary policy.
Referring to other central banks' inflation targets, he said "We cannot just follow someone's example."
Earlier in the day, the nine-member board decided by a 7-2 vote to leave its monetary stance unchanged. The current policy drives overnight rates to zero by flooding the market with excess liquidity, and keeps banks' reserves at the BOJ in a range of 30 trillion yen to 35 trillion yen -- far above the necessary level.
The BOJ has pledged to maintain the quantitative easing policy until the core consumer price index rises in a sustained manner and there is Policy Board consensus that the economy will not slip back into deflation. Recent government data showed the CPI was flat in October compared with the previous year.