The Bank of Japan should continue its powerful monetary easing as there is still a long way to achieve the 2 percent inflation, Deputy Governor Kikuo Iwata, said Wednesday.
The banker noted that the economy is expanding moderately but prices are relatively weak.
“In light of such recent developments in economic activity and prices as well as financial conditions, the Bank deems it important to continue to persistently pursue powerful monetary easing under the framework of “QQE with Yield Curve Control,” Iwata said.
According to summary of opinions, a board member said at its last policy review that it is not favorable to let market expectations regarding the adjustment of monetary easing heighten at an early stage.
“If a reduction in the purchase amount of super-long-term JGBs could have an unintended signal effect on monetary policy, it should be corrected,” the member said.
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