Premature to debate end to negative rate policy

The BoJ must wait for clear signs that prices and wages would rise in tandem, and keep inflation sustainably at its 2% target, says board member Adachi. — Reuters

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.