INTERVIEW: BOJ’s Takata Says Too Early to Discuss Easing Exit

Economy

Tokyo, Dec. 10 (Jiji Press)--It is “too early” for the Bank of Japan to discuss a strategy to exit its massive monetary easing policy as there is “still a distance” from achieving its 2 pct inflation target, BOJ policymaker Hajime Takata has said in a recent interview with Jiji Press.

Meanwhile, Takata showed hopes for a virtuous economic cycle to be realized in the country, pointing to “emerging signs of changes,” such as corporate moves to pass on rising costs to prices and raise wages.

The interview took place at the BOJ’s head office in Tokyo on Thursday. It was the first time for Takata to accept an individual interview with a news organization since he was appointed to the BOJ Policy Board in July this year.

Asked about the 3.6 pct rise in Japan’s core consumer price index in October, the sharpest in 40 years and eight months, Takata admitted that prices are rising “faster than initially expected,” partly reflecting increases in raw material prices.

However, he predicted that the inflation rate will fall below 2 pct in the second half of next year, noting that crude oil prices’ ascent and the yen’s rapid weakening have come to a halt.

[Copyright The Jiji Press, Ltd.]

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