Despite inflation hitting 3%, BOJ sticks to ultraloose playbook

Japan central bank frets over sustainability of price hikes as real wages shrink

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Bank of Japan Gov. Haruhiko Kuroda expects inflation to fall below 2% round next year as effects of the weak yen and high commodities prices wear off. © Reuters

DAICHI MISHIMA, Nikkei staff writer

TOKYO -- The Bank of Japan appears to be doubling down on monetary easing even as inflation outpaces projections, concerned that temporary factors like a weak yen and high commodity prices are the only things keeping the country from a deflationary spiral.

The BOJ will continue to "conduct monetary easing" to pave the way for price increases accompanied by wage hikes, Gov. Haruhiko Kuroda said on Friday.

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