BoJ board member Goushi Kataoka warned in a speech to business leaders, “disruptions in Russia-related trade will weigh not just on Russia’s economy but global growth by prolonging worldwide supply constraints.” And for the time being, “we must pay attention to downside risks to Japan’s economy…as well as upside risks to prices.”
Separately, meeting of January BoJ meeting noted one member said, “We’re seeing stock prices rise for companies that hike prices. Price hikes may broaden, and heighten medium- to long-term inflation expectations.”
Another member said, “many companies are feeling the limit of sticking to a business model that was effective deflation. As they change their price-setting behaviour, inflationary pressure may heighten.”
However, “nominal wage growth must exceed 2per cent for Japan to stably meet the BOJ’s price target,” on member was quoted.
