Half a year after Bank of Japan Gov. Haruhiko Kuroda unleashed record monetary easing, economists see the bank failing to meet its inflation target, underscoring the case for stronger steps to revive the economy.
While the median estimate of BOJ Policy Board members released last week showed the bank expects consumer prices to rise 1.9 percent in fiscal 2015 — in line with a goal of 2 percent in two years laid out in April — just two of 34 analysts surveyed by Bloomberg News see the target met in that time frame.
With the BOJ seen standing pat on the pace of asset purchases until it can assess the impact of the consumption tax hike due next April, the onus is now on the administration to sustain confidence in the "Abenomics" project. Prime Minister Shinzo Abe has yet to introduce legislation such as corporate tax cuts that companies have advocated to boost Japan's potential.
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