TOKYO: Japan is finally in a situation in which achieving the Bank of Japan’s 2% inflation goal is within sight, TAKATA Hajime, a member of the central bank’s policy board, said Thursday.

The BOJ needs to consider flexible measures, including an exit from its massive monetary easing, Takata said in a speech in Otsu, Shiga Prefecture.

He said there is growing momentum for wage increases in the country, noting that many companies have expressed their intention to raise wages this spring at a faster pace than they did a year before. Japan is shifting from thinking that wages and prices do not rise, he said.

Takata said it is necessary for the BOJ to conduct monetary policy appropriately while paying attention to its financial health so as not to damage its credibility, apparently referring to the risk of sharp falls in the prices of government bonds held by the central bank.

JIJI Press