Bank of Japan board member Toyoaki Nakamura said Thursday the central bank will likely need more time before phasing out its massive stimulus, playing down the chance of a near-term end to its negative interest rate policy.
The remarks follow dovish comments from fellow board member Seiji Adachi on Wednesday warning against a premature exit from ultralow interest rates, highlighting uncertainty on how soon the BOJ could roll back ltraloose policy settings.
Nakamura said Japan's continued economic recovery, tight labor market and an increasing number of workers switching jobs are heightening the chance that wage growth will eventually exceed the pace of inflation.