Bank of Japan Deputy Governor Kikuo Iwata said on Wednesday that the timing for achieving the central bank's 2% inflation target has been "somewhat delayed". He added that the inflation in Japan is likely to reach 2% target around the first half of next fiscal year as the underlying inflation was improving and as wages were increasing.

"Going forward, inflation is likely to accelerate. That will bring about a rise in inflation expectations, and such expectations are expected to remain firm," Iwata noted.