Bank of Japan Gov. Kazuo Ueda continued to strike a dovish tone hours after data showed underlying inflation accelerating to the fastest pace in more than four decades.
"The cost of impeding the nascent developments toward achieving the 2% price stability target, which are finally in sight, by making hasty policy changes would likely be extremely high,” Ueda said in a speech in Tokyo on Friday.
Ueda’s reassurance that the BOJ will continue with easing contrasts with lingering speculation over policy adjustment among BOJ watchers. A range of economists from Goldman Sachs to Barclays currently expect a shift in July. Ueda hinted that faster inflation isn’t changing the BOJ’s view as the acceleration is largely being driven by cost-push factors.