MNI BRIEF: BOJ's Ueda Vows To Continue With Easy Policy

Bank of Japan Governor Kazuo Ueda has vowed to maintain easy policy for as long as it takes for the Japanese economy to achieve the Bank's 2% price target.

“Under these circumstances, the BOJ will continue to maintain the stability of financing, mainly of firms, and financial markets, and will not hesitate to take additional easing measures if necessary,” Ueda told business leaders. He noted the Bank will monitor whether recent wage gains are sustainable and the extent they spread to small- and medium-sized firms.

“Moreover, although the underlying rate of inflation is expected to gradually increase toward the price stability target, it is likely to take some more time,” he continued, noting ongoing downside risks to economy.

While the recent April Outlook Report projected prices will gradually approach its target, uncertainties surrounding the outlook remain high thanks largely to offshore risks, Ueda said. “[The BOJ] would patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions, and that by doing so, it would aim to achieve the price stability target of 2% in a sustainable and stable manner, accompanied by wage increases.”