The Bank of Japan said Friday it expects the country's inflation rate to reach 1.9 percent in fiscal 2015, almost achieving its 2 percent price target in about two years, backed by its aggressive monetary easing policy to beat deflation. The BOJ apparently expects the new measures will help it achieve the target, especially after Japan averted criticism of its monetary policy at a meeting of Group of 20 finance chiefs last week, which recognized that the BOJ's aggressive easing steps are intended to stop deflation and support domestic demand.

By Leika Kihara and Stanley White TOKYO (Reuters) - Bank of Japan policymakers are divided over whether the central bank can meet its inflation target in two years, underlining concerns it has set an unrealistic goal in its battle to end 15 years of deflation despite plans for a massive burst of monetary stimulus.

By Leika Kihara and Stanley White TOKYO (Reuters) - The Bank of Japan has taken all necessary steps to meet its 2 percent inflation target in two years and will try to minimise the market disruption from its massive bond buying, Governor Haruhiko Kuroda said on Friday. Kuroda conceded that some people doubted the BOJ could meet its inflation goal and said unexpected events could mean it would take longer than planned, but said the BOJ would maintain its new policy framework for as long as needed.

The Bank of Japan shocked markets on Thursday with a radical overhaul of its policymaking, adopting a new balance sheet target and pledging to double its government bond holdings in two years as it seeks to end nearly two decades of deflation. At Governor Haruhiko Kuroda's first policy-setting meeting, the central bank shifted its policy target to the monetary base -- the total size of cash and bank deposits -- from the overnight call rate, which is at zero to 0.1 percent.