BoJ Deputy Governor Masazumi Wakatabe said in a speech, “since rises in energy and food prices are mainly caused by cost-push factors from abroad, it is desirable to respond to them through measures other than monetary policy.”
“Possible options include fiscal policy and energy policy to reduce Japan’s dependence on petroleum and natural gas,” he added.
For monetary policy, “it is necessary to persistently continue with monetary easing and thereby continue to steadily support the virtuous cycle in the economy and maintain an environment in which wages rise,” he said.
“In addition, if downside risks to the economy materialize, the Bank should not rule out taking the necessary additional easing measures without hesitation.”
