MNI BRIEF: BOJ's Takata Foresees 2% Target, Sees Exit Debate

Bank of Japan board member Hajime Takata said on Thursday he foresees the achievement of the bank’s 2% price target and the Bank must consider a flexible policy exit, flagging the possible near-future policy change.

Takata told business leaders in Otsu City, that corporate price- and wage-setting behaviours had changed, and sustainable wage hikes alongside the improvement of corporate profits and high prices and the norm – that wages and prices do not rise – are moving toward a turning point.

“The BOJ must pay attention to uncertainties but the bank needs to consider changing gear from powerful easy policy, for example scrapping yield curve control and negative interest rate policy, and reviewing the overshooting commitment flexibly,” Takata said.

MNI has reported the BOJ may adjust policy at the upcoming March or April meeting. (See MNI POLICY: BOJ Sees Intact Recovery, Policy Change Ahead)