VOT Research Desk
NakamuraToyoaki, a member of the Bank of Japan’s board, stated that the country’s economy is still struggling to recover from the pandemic-induced recession and that the central bank must gradually continue its monetary easing.
There have been no wage increases in recent years. Japan is a long way from being in a situation where a spiralling wage inflation is a worry. Japan’s economy is improving and is probably going to recover.
Consumer inflation in Japan is rising quickly but is projected to taper down in 2019 as the impact of rising energy and food prices fades.
Depending on the effects of rate increases by foreign central banks, global financial and capital conditions may tighten more than anticipated.
If increases in the price of grains and raw materials continue, both domestic and foreign economies could become even weaker. Japan’s economic, wage structure must be brought closer to those of other advanced nations; there is no magic wand to increase Japan’s potential for growth.
