BOJ deputy governor Wakatabe says premature to tighten monetary policy now

FILE PHOTO: A man wearing a protective mask walks past the headquarters of Bank of Japan amid the coronavirus disease (COVID19) outbreak in Tokyo

TOKYO: It is too soon for the Bank of Japan to tighten monetary policy as the economy has not fully emerged from the pandemic's hit, Deputy Governor Masazumi Wakatabe said, dousing speculation that creeping inflation could prompt it to tweak yield targets.

Wakatabe said in a speech on Thursday that consumer inflation may accelerate to around 1% in coming months and could speed up more than expected as more companies seek to pass on higher costs to households.