BoJ board member Toyoaki Nakamura said in a speech that “Japan’s economy is still in the midst of recovering from the pandemic-induced slump.”
“Shifting to a monetary tightening stance, at a time when demand remains short of supply, would hurt the economy and act as a big restraint to household and business activity,” he said.
“While core consumer inflation may accelerate toward year-end due to rising prices of energy, food and durable goods, such a boost will likely dissipate,” he noted. “Japan is not yet in a situation where it can achieve our price target in a sustained, stable fashion”.
