TOYAMA (Kyodo) Bank of Japan Policy Board member Shin Nakahara said Thursday an inflation rate of 1 percent to 2 percent growth is appropriate for price stability.
"Given the bias in the consumer price index, and a margin to stay out of negative territory, I believe a year-on-year rise of 1 to 2 percent in the CPI is appropriate for price stability," Nakahara said in a speech to local business leaders in the city of Toyama.
In line with the end of the BOJ's ultraloose monetary policy earlier this month, the central bank unveiled a new framework that says an inflation reference rate of zero to 2 percent is desirable for price stability in the medium term.