MNI BRIEF: Board Member Sees Continued High CPI - BOJ Opinions

A Bank of Japan board member voiced concern over the possibility of continued high inflation but noted the need to continue patiently with easy policy at the April 27-28 meeting, according to the summary of opinions released Thursday.

The summary showed most board members felt the possibility of continued high inflation warranted attention, however, a rate consistently below 2% was considered more important in the medium term.

A different member said the achievement of the 2% price stability target was in sight. "However, it is appropriate that the BOJ continue with monetary easing for the time being, since there are both upside and downside risks,” the member noted. Another member pointed to a positive sign of the emergence of a virtuous wage, price cycle. "It is necessary for the Bank to appropriately assess underlying developments in economic activity and prices so that its policy responses will not fall behind,” the member added.

A different member added, since achievement of the price stability target will take time, "the forward guidance, which states that the Bank will continue with monetary easing until achievement of the target, is effective from the perspective of demonstrating its strong commitment to achieving the target.”