MNI BRIEF: Time Needed To Adjust Easy Policy - BOJ's Nakamura

Bank of Japan board member Toyoaki Nakamura said on Thursday that it will take time and careful consideration to adjust easy policy as the bank faces the crucial point of achieving its 2% price target.

“The current price rises are due mainly to import price cost-push and I’m confident of achieving the 2% price target accompanied with wage hikes,” Nakamura told business leaders in Kobe City.

He added that the BOJ needs to continue patiently with easy policy for the time being without elaborating how long it will maintain its easy settings.

Nakamura also said a virtuous wage-price cycle was possible next year, but high wage hikes without an improvement to labour productivity would be unsustainable.

Nakamura faovoured conducting yield curve control with greater flexibility at the October meeting but he dissented, saying it was more desirable to allow greater flexibility after confirming a rise in firms' earnings, particularly smaller ones.