Bank of Japan board member Asahi Noguchi emphasized the need for Japan to continue its ultra-easing policy.
Noguchi acknowledged the impact of global inflation on Japan on Saturday, saying, “Since spring 2022, the consumer inflation rate has exceeded the Bank of Japan’s 2% target, and the impact of rising global inflation is on Japan.” It’s true that it’s affecting the economy.”
However, Mr. Noguchi distinguishes the nature of Japan’s inflation from that of Europe and the United States, and argues that, in contrast to wage-driven price increases in the United States and Europe, “this increase is mainly due to cost-push factors associated with rising import prices.” ” he pointed out. This difference is important in understanding the Bank of Japan’s monetary policy approach.
Noguchi emphasized that to effectively achieve the Bank of Japan’s inflation target, “we must see price increases supported by sustained wage increases.”
Noguchi believes that despite the large wage increases in this year’s spring wage negotiations, Japan is only at the beginning of the path to achieving its inflation target, saying, “There is still a possibility of achieving the target.” We’re just getting to the point where we’re at,” he said. visual acuity. “