TOKYO: Bank of Japan (BoJ) board member Seiji Adachi says it was premature to debate an exit from ultra-loose monetary policy, warning of lingering global economic risks and uncertainty over next year’s wage outlook.
Adachi said inflation could overshoot the central bank’s forecasts, as more companies hike prices to pass on rising costs and increase wages to cope with a tightening labour market.
But he said the BoJ must wait for clear signs that prices and wages would rise in tandem, and keep inflation sustainably at its 2% target.
“While there may be early signs such positive wage-inflation cycle is emerging, conditions aren’t sufficient yet” to debate an exit from ultra-loose monetary policy, he said in a speech.
“For now, it’s appropriate to patiently continue with our monetary easing,” said Adachi, who is considered as among those in the nine-member board with a dovish policy bias. — Reuters