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TOKYO: Japanese Prime Minister Fumio Kishida said on Thursday (Mar 28) it was appropriate for the central bank to maintain accomodative monetary conditions.
The government will retain close coordination with the Bank of Japan to ensure wages continue to rise and the economy makes a complete exit from deflation, he said.
“Japan is experiencing a historical chance to make a full exit from deflation,” Kishida told a news conference.
“Some people may think that the government can declare that Japan is fully out of deflation. But we’re still half way there,” he added.
Kishida said his administration’s key mandate was to ensure companies and households pull out of a deflationary mindset.
“I will promise to ensure wages increase at a pace exceeding the inflation rate next year onward,” he said.
The BOJ ended eight years of negative interest rates and other remnants of its unorthodox policy last week, making a historic shift away from its focus on reflating growth with decades of massive monetary stimulus.
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