No change to ultra-easy policy commitment: BOJ deputy governor

BANK of Japan (BOJ) deputy governor Masazumi Wakatabe said on Thursday (Feb 2) that there was “absolutely no change” in the central bank’s commitment to maintaining its ultra-loose monetary policy.

An increasing number of companies were raising prices and becoming more keen to lift wages, Wakatabe said, adding that the outcome of annual wage negotiations between companies and unions were among key factors the BOJ would scrutinise.

But there was uncertainty on whether such changes in the inflation outlook would be sustained, and help Japan achieve the central bank’s 2 per cent inflation target sustainably, he added.

“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. The BOJ will continue to conduct monetary policy with the aim of achieving its 2 per cent inflation target, accompanied by wage increases.”

A vocal advocate of aggressive monetary easing, Wakatabe has consistently voted for maintaining ultra-loose monetary policy. His five-year term as deputy governor will end in March. REUTERS