By Megumi Fujikawa
TOKYO–Bank of Japan Gov. Kazuo Ueda reaffirmed the bank’s stance to maintain monetary easing and warned of the risk of premature tightening.
Japan is finally seeing signs of inflation moving toward 2% and “making hasty policy changes” could ruin such positive developments, Ueda said in a speech Friday.
“It is appropriate to take time to decide on adjustments to monetary easing toward a future exit,” he said.
Ueda reiterated that inflation would fall below the bank’s 2% target toward the middle of the current fiscal year that started in April. Government data released earlier Friday showed that overall consumer prices rose 3.5% from a year earlier in April.
Write to Megumi Fujikawa at [email protected]
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