TOKYO, Reuters – The BOJ sponsored workshop was attended by a Bank of Japan member as well prominent economists. They were asked to analyze price trends in order to determine if tighter policies are needed. A summary of Monday’s discussions showed that the Bank of Japan Board Member and prominent economists agreed that non-monetary measures should be used against energy-price inflation.

In March, the panel was comprised of Shinichi Umachida (BOJ Executive Director) and two academics. It discussed factors that contributed to the differences in consumer inflation between Japan and Western economies, as well the future outlook for prices.

According to the summation of the 29 March workshop, which was the first of a series, “Panelists agree that it’s desirable to keep monetary easing to reduce weak demand while it’s desirable to react to price rises in some items and energy by other means than monetary policy.”

Market players have speculated that the BOJ might follow the lead of major central banks and tighten monetary policy. This could include raising interest rates to slow down the price acceleration.

Japan’s Core Consumer Prices grew 2.1% from April to April. This is the fastest growth rate in 7 years.

But, according to the BOJ, inflation is unlikely to remain at its current 2% target over time because of rising prices for energy and raw material.

Masayoshi Amamiya (BoJ deputy governor) told workshop that Japan’s low inflation is likely to be due to low household demand, as well as firms’ prudent price-setting behavior.

BOJ stated that a second workshop was planned for May 30.