Japan price pressures mounting as firms ditch 'deflation' model, says BOJ official


"With the impact of the pandemic continuing, shifting to tighter monetary policy now would inflict huge damage to business and household activity," Bank of Japan board member Seiji Adachi said

Japan may see inflationary pressure build up ahead, as more companies shift away from a business model that worked under a prolonged period of deflation, Bank of Japan board member Seiji Adachi said on Thursday.

But he warned that it was premature to tighten monetary policy now, as inflation remains short of the central bank's 2% target and the economy has yet to fully recover from the COVID-19 pandemic.

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