NEW YORK Feb 28 The Bank of Japan must try
harder to convince the public it can spur faster price
increases, a Japanese central banker said in a speech that
acknowledged it could be some time before the institution
achieves its inflation goal.
"The Bank needs to increase its dialogue with the public to
promote understanding of the importance of the 2 percent
target," Sayuri Shirai, a member of the Bank of Japan's policy
board, said at a monetary policy conference on Friday.
Japan is engaged in a monumental campaign to revitalize an
economy plagued by years of stagnant growth and falling prices.
The Japanese central bank is playing a pivotal role in the
effort, engaging in massive money printing in a bid to reverse
the nation's deflationary mindset.
Shirai said it could take some time to get inflation to 2
percent. "It is possible that it may take even longer to achieve
a situation where the 2 percent target is maintained in a stable
manner," she said.
She said there have been some signs that the public is
adopting higher expectations for inflation, which would be a
major accomplishment for the central bank, but that some of the
increase was due to the impact of a looming tax hike.
This means the Bank of Japan has work to do to convince the
public that it will spur higher inflation.
"Maybe some people still have some doubt about our
commitment," Shirai said during a panel discussion following her