BOJ Board Member

  • Japan's economy improved after BOJ easing
  • Only problem is that prices have not risen
  • Labor shortages have been insufficient
  • Banks are facing difficutly not just because of low rates but because of lack of fund demand
  • BOJ may suffer losses when it ends easy policy but that wont cause damage to economy
  • Will scale back degree of monetary easing if momentum in inflation big enough; need conviction that inflation will hit 2%
  • There is nothing unusual about BOJ being late in ending easy policy compared with Fed, ECB as inflation still below 1%
  • Lowering CPI target would cause yen to strength
  • Yen is stable at about 110 yen to USD since QQE started.
  • Price and wages to rise if continue current policy