Bank of Japan's Board members noted that the country is showing signs of wage rises but that the central bank should nonetheless maintain its ultra-loose monetary policy.
The bank said the country's economy is likely to recover from COVID-19, with supply-side constraints already waning, although it is expected to be under downward pressure by high commodity prices and a slowdown in overseas economies.
"Japan's economy is currently in a critical phase for achieving the price stability target of 2 percent in a sustainable and stable manner, and continuing with monetary easing is necessary," the Board stated in a summary of opinions of its November policy meeting.
