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BOJ’s Nakagawa says 2% price goal isn’t sole purpose of BOJ policy

by Mike Robinson

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© Reuters. FILE PHOTO A man in a mask walks by the Bank of Japan headquarters during the COVID-19 outbreak that erupted in Tokyo, Japan on May 22, 2020. REUTERS/Kim Kyung Hoon

TOKYO, Reuters – The Bank of Japan’s monetary policies are not solely focused on achieving 2% inflation. Price movements could vary around this level from time to other price changes, Junko Nakagawa, a member of its Board of Directors was quoted by Bloomberg as saying.

Nakagawa stated that although consumer inflation remains low at around zero percent, it is increasing partly because of the effects of rising oil costs and food prices.

She said that the BOJ would continue to have an ultra-loose policy to meet its goal of 2% in price, according to an interview she conducted Wednesday. It was then published on Friday.

According to Bloomberg, Nakagawa stated that there are both benefits and disadvantages of Japan’s weak yen. It boosts profits for exporters but raises import costs for domestic companies.

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