Bank of Japan Gov. Toshihiko Fukui warned Tuesday of future inflation risks and suggested the central bank would gradually increase key short-term interest rates to avert a hard landing.
"If we deal with problems of prices and the economy after they arise, we have to make radical adjustments and the economy will be affected," Fukui said during a speech he gave in Tokyo.
"The point is, we take a forward-looking approach to avert such risks," he said. "This is intended to maintain long-term economic growth and not to nip growth in the bud."