TOKYO : Bank of Japan Governor Haruhiko Kuroda on Tuesday vowed to keep monetary policy ultra-loose and said the central bank was mindful of the risk inflation could shoot up before wages begin to rise.
The central bank is counting on wage hikes to help meet its 2per cent inflation target in a stable manner, while the wage talks will also be a key gauge of whether Kishida can achieve his pledge to stoke a virtuous cycle of growth and wealth distribution. The premier said it was hard to draw a line on what constituted"good" or"bad" inflation, and declined to say when Japan could achieve the type of inflation considered desirable.
"We remain vigilant to the risk prices may shoot up before wages begin to rise, or how could hurt smaller firms. We must keep an eye out on these risks, while maintaining our current easy monetary policy," he said.
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