Nikkei: Japanese govt grows "skeptical" of BoJ’s inflation goal

The Japanese government said to be doubtful that Bank of Japan (BoJ) will achieve 2% inflation target, reports Nikkei with Bloomberg providing the headlines.

Key quotes, via Nikkei:

"The Japanese government is increasingly diverging from the Bank of Japan's stance that 2% inflation can be achieved soon.

The central bank has targeted 2% price growth within a roughly two-year time frame since 2013, when Haruhiko Kuroda became governor. Yet the government sees inflation falling steadily instead.

The revised economic outlook released Friday by the BOJ shows the consumer price index growing 1.7% next fiscal year and inflation reaching 2% within fiscal 2017, the same as in the bank's April report. But the government's midyear economic projection from mid-July gives a less rosy view, with the CPI seen rising 1.4%.

The average forecast of 43 private-sector economists pegged fiscal 2017 CPI growth at a meager 0.7% in July, a full percentage point below the BOJ's estimate. Inflation will not hit 1.7% next fiscal year without a sharp rise in expectations for future inflation, a government insider said."