BoJ to continue with monetary easing
Bank of Japan (BoJ) aims to continue with monetary easing until the 2% price stability target is achieved, according to a summary of opinions released on Monday. It noted that easing can result in distortions on the yield curve but that they should be corrected as inflation declines. It projected that prices should start falling below 2% in the second half of 2023, arguing that returning to the 2% target would require a sustained rise in service prices and further wage increases.
The BoJ noted calls for revision of its accommodative policy, arguing that "as the environment surrounding prices is currently changing for the better toward achieving the price stability target, the risk from a hasty policy change that could lead to missing a chance of such achievement should be considered as more significant than the risk from a delay in policy change."