Reported 4 months ago
Takeo Hoshi, an academic knowledgeable about Japan's monetary policy, emphasized the need for the Bank of Japan to steadily increase interest rates to prevent inflation from surpassing its 2% target. Hoshi highlighted changing dynamics in wage inflation due to labor shortages, pushing labor costs and prices higher. He suggested that the BOJ should continue raising rates to stabilize inflation expectations, eventually moving towards quantitative tightening. Hoshi also cautioned about the risk of inflation exceeding the target and stressed the importance of considering global economic conditions in policy decisions, with many expecting a rate hike this year.
Source: YAHOO