BoJ board member Asahi Noguchi said the central bank must continue to maintain monetary easing, keep interest rates at low levels now as achievement of 2% inflation target remains uncertain.
“While not as much as other countries, Japan’s consumer prices have risen sharply. This increase is driven mostly by rising imported goods prices,” he said. “What’s more important in deciding monetary policy is trend inflation based on domestic macro-economic factors, which remains at low levels.”
Inflation is likely to fall back below 2% once these cost-push factors dissipate.
