BOJ’s Noguchi: Central bank’s current monetary policy has been effective

The Bank of Japan’s (BOJ) current monetary policy is much appreciated, as it pulled Japan out of a state of deflation, the central bank’s new board member said in a statement on Thursday.

Additional comments

It's very important to prepare options for in case the BOJ needs to ease policy.

Whether the BOJ uses easing options will be decision that will need to be made upon big economic shocks.

If necessary, the BOJ must act to achieve price stability, appropriate job market even if doing so involves side-effects.

Disinflation is something many economies face, not just Japan.

The BOJ’s current monetary policy has been effective but it is taking quite a long time for inflation to accelerate toward its target.

The BOJ must first deal with aftermath of COVID-19 with cooperation of government then proceed with steps to achieve inflation target.

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