BOJ Gov. Kuroda supportive action for inflation to reach 2%. The Bank of Japan and the government should continue to collaborate closely on policy, says Japan’s PM Kishida. He thinks that maintaining the current loose monetary policy will allow for the achievement of the 2% inflation target and wage growth.
BOJ hints at a loose policy
The current priority is to strengthen the economy and establish conditions that will allow businesses to raise wages. Consumer inflation is currently up year over year, primarily as a result of businesses carrying along rising import prices.
Although it may require some time, Japan’s inflation is projected to gradually increase due to a decreasing output gap and increased salaries.