Bank of Japan Gov. Haruhiko Kuroda has pledged to maintain monetary easing to support an economy that’s still recovering from the pandemic and has yet to achieve a stable pace of inflation.
Wages need to increase much more to achieve Japan’s price-stability target, Kuroda said at the Institute of International Finance annual meeting in Washington on Wednesday. The BOJ needs to continue easing in order to secure that inflation target and support the economic recovery, he said.
Kuroda reiterated his view that Japan’s inflation, which has accelerated thanks in part to a sharp weakening in the yen, is different than that seen in the U.S. and eurozone economies. Stable inflation must be accompanied by wage increases, and there’s a need for caution about the outlook for consumer prices, he said.