BOJ policymaker rules out stimulus withdrawal even after economy recovers

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TOKYO :The Bank of Japan must maintain its massive stimulus even when the economy rebounds from the pandemic's hit, board member Asahi Noguchi said, reinforcing exectations the country will lag behind in withdrawing crisis-mode policy measures.In a speech, Noguchi sounded cautiously optimistic on Japan's econ

TOKYO :The Bank of Japan must maintain its massive stimulus even when the economy rebounds from the pandemic's hit, board member Asahi Noguchi said, reinforcing exectations the country will lag behind in withdrawing crisis-mode policy measures.

But Japan's low trend inflation means a re-opening of the economy likely will not trigger a spike in wages and inflation seen in other advanced nations, he said. Noguchi also said the BOJ must be cautious about ending a pandemic-relief loan programme that expires in March given the need to support the fragile economy, signalling readiness to argue for another extention to the deadline.

"What's most notable at today's speech is the fact that Noguchi suggested Japan is different from other countries who face rising inflation," said Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities.

 

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