Bank of Japan Gov. Kazuo Ueda said on Wednesday the central bank must pay more attention to the risk of failing to meet its 2% inflation target with premature monetary tightening, rather than being behind the curve in combating too-high price growth.
While other countries are experiencing elevated inflation, the situation is "quite different" in Japan, Ueda said in Japan's Group of Seven chair briefing with Finance Minister Shunichi Suzuki.
"I don't deny it as a possibility," Ueda said when asked by a reporter whether Japan could risk being behind the curve in addressing the risk of too-high inflation by keeping monetary policy ultraloose for a prolonged period.