Bank of Japan will not amend the monetary policy

Board member of the Japanese Central Bank Nakamura said that monetary policy tightening is not expected succinctly. It will be prospective to discuss this issue after the salary in the country shows a steady increment rate. The situation in Japan is alternative from that observed in European countries and the United States. Japanese inflation and wage growth remain low. Nakamura assumed that the country’s business would begin to pass on to consumers the growing costs of producing goods and services. In this case, an acceleration in the growth rate of consumer prices is expected. If rates are raised now, then Japanese companies will be deprived of the funds they need to raise wages. Nakamura noted that pent-up demand is unlikely to materialize this quarter. Most likely, it will be implemented in May, since there are many holidays this month. Nakamura also said that Japan’s economy is recovering well. In the future, this trend is likely to continue, as the pandemic negative impact will gradually weaken.

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Arseny Kudrin

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