2024 outlook: The BOJ will choose its moment for normalization

Gov. Ueda seems impatient with Japan's lack of real wage growth

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Despite consistently emphasizing that its 2% inflation target has not yet been reached, BOJ Gov. Kazuo Ueda has initiated forward-looking discussions on normalization. © Reuters

Sayuri Shirai is a professor of economics at Keio University in Tokyo and a former member of the board of the Bank of Japan.

Since September, comments by Bank of Japan officials about monetary policy normalization have received considerable attention. This is because Japan is the lone major economy still hewing to ultraloose monetary policy, having stood apart from central banks in other developed economies that have been raising interest rates for almost two years.

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