Policy tightening would harm economic activity - BoJ's Nakamura - Breaking The News
Download our appPlay StoreApp Store

Policy tightening would harm economic activity - BoJ's Nakamura

EPA-EFE/FRANCK ROBICHON

Bank of Japan board member Toyoaki Nakamura said on Thursday that monetary policy tightening while the output gap is negative would "weigh heavily" on the economic activities of both households and companies. He noted that, in the case of cost-push inflation, it is better to respond with targeted measures than to shift policy to limit demand.

Nakamura predicted that inflation in Japan will accelerate due to energy costs, followed by increasing at a narrow pace later. Comparing the domestic situation to foreign economies, he stated that Japan's prices are rising more slowly because of slow wage growth, but that "there appears to be a shift in long-held mindset in Japan that prices won't rise much." He stressed that the BoJ must continue the policy of monetary easing and reach the 2% inflation target in a sustainable way.

Related News

Please observe our Terms of Use. The price information is time delayed to varying extents, but as a rule by 15 minutes or more, according to the regulations of the selected stock exchange and/or licensors and the type of securities.

© 2025 TeleTrader Software GmbH. All rights reserved

This website uses cookies to ensure you get the best experience. Our Terms of Use and Data Protection Policy explain the data we collect, why we collect them, and how we may share them.