MNI BRIEF: BOJ's Kuroda: Strongly Rules Out Policy Tightening

Bank of Japan Governor Haruhiko Kuroda reiterated on Monday that monetary tightening is not a suitable measure as the economy is on its way to recovery from the pandemic and has been under downward pressure.

“The top priority for the Bank is to persistently continue with the current aggressive monetary easing centered on yield curve control,” Kuroda told business leaders in Tokyo, (See: MNI BRIEF: BOJ's Kuroda Repeats Easy Policy, Yen Stances).

“Unlike other central banks, the BOJ has not faced the trade-off between economic stability and price stability. For this reason, it is certainly possible for the BOJ to continue stimulating aggregate demand from the financial side. What warrants attention is the extent to which firms will take into account the recent inflation of nearly 2% in their wage increases from fiscal 2023 onward.”