Bank of Japan's deputy governor reiterates target of two per cent inflation within two years

The Bank of Japan's deputy governor, Kikuo Iwata, has repeated a "goal to achieve two per cent inflation as soon as possible with a two-year timeline as a reference point".

Iwata said the bank is "focused on how we are achieve two per cent inflation. What we want to see is higher wages and an increase in capital expenditure contributing to our price goal."

Trying to play down fears of above target inflation, Iwata said that if the bank thought "inflation would consistently overshoot our target, then we wouldn't buy debt even if the government requested us to do so".