Bank of Japan officials remained unwavering in their determination to maintain massive monetary stimulus, even as some noted signs of a change in the country’s low-inflation environment, the minutes of its March monetary policy meeting, released on Monday, showed. fair (9).
Several members of the central bank’s nine-member board said that some large companies were raising wages and that companies were more enthusiastically passing on rising raw material costs to households, which could put pressure on consumer inflation, the report showed. min.
Japan’s consumer prices rose the fastest among major advanced economies during the global inflationary cycle in the 1970s, meaning there’s always a chance that inflation will spike once price increases spread, one member noted.
But most other board members warned of heightened risks to Japan’s economy posed by the Ukraine crisis, which will keep inflationary pressure moderate, according to the minutes.
“Unlike the US and UK, Japan is not in a situation where the inflation rate is likely to exceed the central bank’s 2% price target on a sustained basis,” some members said, according to the minutes.
“It is therefore important that the Bank of Japan continue with monetary easing to support the recovery of the economy in the face of the pandemic,” they added.
Source: CNN Brasil
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