MNI BRIEF: BOJ To Manage Policy To Achieve 2% Target
MNI (TOKYO) - The Bank of Japan Board on Thursday repeated its policy stance of conducting monetary policy as appropriate to achieve its 2% target in response to developments in economic activity and prices, a statement released by the BOJ said.
"While making use of the findings of the review, the bank, with the price stability target of 2%, will continue to conduct monetary policy as appropriate, in response to developments in economic activity and prices as well as financial conditions, from the perspective of sustainable and stable achievement of the target," the BOJ said.
However, the bank did not elaborate on when and how it would adjust the degree of easy policy.
The BOJ largely maintained its assessment on the overall economy and major economic components, including the expected inflation. “Japan’s economy has recovered moderately, although some weakness has been seen in part,” the BOJ said. “Japan’s economy is likely to keep growing at a pace above its potential growth rate.”
As for the risks to the outlook, the Bank noted high uncertainties surrounding Japan’s economic activity and prices remain, "including developments in overseas economic activity and prices, development in commodity prices, and domestic firms’ wage- and price-setting behaviour.”
“In particular, with firms’ behavior shifting more toward raising wages and prices recently, exchange rate developments are, compared to the past, more likely to affect prices.”