Daily Management Review

Bank of Japan to continue ultra-soft policy


According to Bank of Japan Governor Haruhiko Kuroda, the Bank of Japan will maintain its ultra-soft policy because the Japanese economy is less impacted by inflation than other nations' economies. He added that the 15-year deflationary trend in the nation is impeding wage growth.

May showed Japan's core consumer inflation remain at 2.1 percent for the second consecutive month, and Kuroda noted that the growth has primarily resulted from increasing energy prices.

According to him, core consumer inflation may stay at around 2 percent for about a year before beginning to decline in the upcoming fiscal year, which starts in April 2023.

Japanese businesses have been slow to raise pricing and pay following a 15-year period of deflation that ended in late 2013, according to Kuroda.

He declared that "the economy has rebounded and businesses have begun to make big profits." Although there is a visible shortage of workers on the market, neither prices nor wages have increased significantly.

source: kyodonews.net