BOJ Deputy Gov Uchida says end of battle against deflation in sight

The end of Japan's battle against deflation is in sight, even though anchoring inflation expectations to the Bank of Japan's 2% target is a big challenge, BOJ Deputy Governor Shinichi Uchida said on Monday.

"While we still have a big challenge to anchor the inflation expectations to 2%, the end of our battle is in sight," Uchida said in a speech to a BOJ-hosted seminar on central banking.

Labour market conditions have changed structurally and irreversibly, helping resolve the original causes of deflation, he said.

"This time is different," he added.