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BOJ's Wakatabe hails Fed's new target as 'historical' decision

FILE PHOTO: Deputy Governor at the Bank of Japan, Masazumi Wakatabe, speaks at a European Financial Forum event in Dublin, Ireland February 13, 2019. REUTERS/Clodagh Kilcoyne

TOKYO (Reuters) - The U.S. Federal Reserve’s adoption of an average inflation target is a “historical” decision but more time is needed to gauge the impact on other central banks’ policies, Bank of Japan Deputy Governor Masazumi Wakatabe said on Wednesday.

“The Fed has set a new target. But for monetary policy, there is always the question on what tools and communication means a central bank has to achieve its goal,” Wakatabe told an online news conference.

“As such, we’d like to cautiously examine what effect the creation of the target could have” on the economy, he said.

Reporting by Leika Kihara; Editing by Chris Gallagher

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