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MNI BRIEF: BOJ's Takata Says Easy Policy Should Be Maintained

(MNI) TOKYO

Bank of Japan board member Hajime Takata said on Thursday that the BOJ should patiently maintain easy policy, while paying attention to the impact of powerful easy policy on market functioning.

“The latest Outlook Report showed that the 2% price target will not be achieved in the projection period,” Takata told business leaders in Yokohama City.

He also warned of the risk that downside risks to Japan’s economy will strengthen due to a possible economic downturn caused by the rate hikes in the U.S. and Eurozone.

Takata said the BOJ needs to improve the supply-demand gap of the economy by patiently keeping easy policy, as the output gap has improved to near zero percent and the gap is expected to turn into positive territory in this fiscal year
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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