BOJ board member Nakamura says more time needed before policy shift

Bank of Japan policy board member Toyoaki Nakamura said the central bank needs to continue monetary easing for a while because he is still not confident that the country can achieve a sustainable 2% inflation backed by wage growth.

“We are now seeing a one-in-a-thousand chance to achieve a virtuous cycle of wages and prices,” Nakamura said in a speech Thursday.

“I believe we need a little more time before we can modify monetary easing” as the nation is facing a critical moment, he said.

Nakamura, a former executive at electronics maker Hitachi, dissented from the BOJ’s decision in October to make its cap on the 10-year Japanese government bond yield a reference rather than a hard limit.

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