In the G7 central bank chief briefing in Japan, BoJ Governor Kazuo Ueda underscored the unique inflation situation in Japan compared to other countries. While elevated inflation rates are affecting many countries, Japan’s price gains are expected to slow down to below 2%, prompting the BoJ to continue its monetary easing policies.
Ueda acknowledged the possibility of Japan falling behind the curve in addressing the risk of high inflation. However, he emphasized the importance of being more focused on the risk of inflation falling short of the 2% target. He stated, “As we guide monetary policy, it is appropriate to pay more attention to the risk of inflation undershooting 2 percent and thus moving away from the goal.”
Ueda is set to have his first policy meeting on April 27-28, where he will likely further discuss Japan’s distinct inflation trajectory and the country’s monetary policy approach.