On Thursday, Bank of Japan (BOJ) Deputy Governor Masazumi Wakatabe reiterated the central bank’s commitment to its ultra-loose monetary policy, saying, “absolutely no change.”
Wakatabe stated that a growing number of companies were rising prices and becoming more eager to raise wages, and that the outcome of yearly wage discussions between companies and unions would be among the important elements the BOJ would monitor.
However, Wakatabe expressed doubt that such changes in the inflation outlook would be sustained and enable Japan to achieve the central bank’s 2% inflation objective in a sustainable manner.
“Since current changes in prices were driven largely by rising import prices, it’s necessary to carefully examine whether these changes will be maintained even after cost-push pressures have diminished,” he said.
“The BOJ will continue to conduct monetary policy with the aim of achieving its 2% inflation target, accompanied by wage increases.”