MNI BRIEF: Current Easy Policy Appropriate - BOJ's Nakamura
Bank of Japan board member Toyoaki Nakamura said on Thursday it is appropriate for the BOJ to continue with the current easy policy to achieve the bank’s 2% price target.
“Japan’s economy can get a golden opportunity to achieve the bank’s 2% price target and a sustainable economic growth as wages and prices are moving,” Nakamura told business leaders in Sapporo City.
Nakamura said that the board’s median view showed that the core-consumer price index is expected to move about 2% in fiscal 2025 and 2026, but he sees the risk that the core-CPI will not achieve 2% in or after fiscal 2025.
He also said the rise in disposable income and a change of real wages to positive territory are necessary to strengthen the income and spending virtuous cycle.