© Reuters. Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023. REUTERS/Issei Kato/File Photo
By Leika Kihara
KOBE, Japan (Reuters) -Bank of Japan board member Toyoaki Nakamura said on Thursday the central bank will likely need some more time before modifying its ultra-loose monetary policy.
Nakamura said Japan’s continued economic recovery, tight labour market and an increasing number of workers switching jobs are heightening the chance that wage growth will eventually exceed the pace of inflation.
But real wages fell from year-before levels for the 18th straight month in September as inflation hit 2.8% due largely to cost-push factors, he said, stressing the need to maintain ultra-loose policy for the time being.
“We haven’t reached a stage where we can say with conviction that sustained, stable achievement of our 2% inflation target, accompanied by wage growth, is in sight,” Nakamura said in a speech to business leaders in the western Japan city of Kobe.
