MNI BRIEF: BOJ Nakamura: Must Patiently Maintain Looses Policy Settings

Bank of Japan board member Toyoaki Nakamura said on Thursday that the BOJ must patiently maintain its current loose policy settings as Japan’s economy is still in the process of recovering from the Covid-19 pandemic, while reaffirming the idea that the Bank’s 2% price target is yet to be achieved.

“It is important to achieve the 2% price target in a stable manner in accordance with sustainable wage hikes,” Nakamura told business leaders in Fukuoka City.

Nakamura also noted that wage growth has picked up in 2022, aided by the recovery of economic activity and the continued labor shortages, but cautioned that sustainable wage hikes are needed, with winter bonuses and next year’s wage negotiations being of paramount importance on that front.