BoJ board member Makoto Sakurai noted that prices in Japan were coming “under strong pressure” and inflation “may not accelerate much” even after prices growth turned positive. Though, it’s not something “unique to Japan”, but a “common problem” for major advanced economies.
Sakurai reiterated that BoJ’s pledge to maintain an accommodative monetary policy stance was playing a critical role in support the economy. The central bank “must underpin inflation expectations”, and “ensure they are in positive territory.
“At present, financial institutions have sufficient capital so there is no big concern over Japan’s banking system. But we need to be prepared to take swift action, with a close eye both on the economy and the banking system,” he also noted.
