BOJ board member says central bank needs to maintain easing

Bank of Japan policy board member Toyoaki Nakamura said Thursday that the bank would continue its easy policy stance because Japan hasn’t achieved its inflation goal yet.

“It still needs time until the bank can shift toward monetary tightening because it is not yet visible whether it can achieve the 2% inflation goal accompanied by wage growth in a sustainable and stable manner,” Nakamura said in a speech to business leaders in Gifu prefecture in central Japan.

Nakamura dissented to the BOJ’s decision in late July to raise its cap on the yield of 10-year Japanese government bonds, saying the timing was premature. The former executive at electronics maker Hitachi said Thursday that early monetary tightening would likely hurt Japanese companies’ earning power.

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