Bank of Japan member stresses easy policy despite rising costs | Business and Economy
Asahi Noguchi says loose policy is needed because Japan doesn’t have high inflation rates like in other countries.
On Thursday, Bank of Japan (BOJ) board member Asahi Noguchi said the central bank must maintain an extremely easy monetary policy, even as commodity costs soar. is expected to accelerate inflation towards the elusive 2% target.
The Ukraine crisis has pushed up raw material prices, although companies have struggled to pass higher costs on to consumers due to weak household spending, Noguchi said.
While Japan’s core consumer inflation is likely to exceed 2% from April due to rising energy costs and the negative impact of past mobile phone fee cuts, the increase is clear. This is clearly due to external factors rather than a recovery in domestic demand, he added.
“Japan doesn’t have to experience the kind of high inflation that many other countries have,” Noguchi said in a statement, adding that policymakers must continue to focus on ending deflation more. is to curb inflation.
“In a country that is still mired in a fixed deflationary mindset, it will take a long time to reach the 2% inflation target steadily and justify pulling back on stimulus measures,” he said. .
Noguchi’s view echoes that of BOJ Governor Haruhiko Kuroda, who has underscored the bank’s determination to keep monetary policy extremely loose even as other major central banks are looking to exit. crisis mode stimulus measures.
