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MNI BRIEF: BOJ Wakatabe: No Tightening Until Price Target Hit

TOKYO (MNI)

Bank of Japan Deputy Governor Masazumi Wakatabe on Thursday strongly tamped down speculation of any early change to easy policy, saying that tightening before a sustained 2% price target is reached will hinder economic recovery and is premature.

“The normalisation of monetary policy in Japan is associated with achieving the BOJ's price stability target in a stable and sustainable manner,” Wakatabe told business leaders in Wakayama City via an online conference, see: MNI INTERVIEW 1: Measured Tweaks Ok For BOJ Policy-Ex Official.

“Given the current situation where Japan's economy has finally started to pickup from the pandemic, it is definitely too early for the Bank to start tightening monetary policy when the target has not yet been achieved as this could hinder the economic recovery,” Wakatabe said.

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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