BOJ member makes statement on easing

Bank of Japan (BOJ) Board Member Seiji Adachi has stated that the bank must continue with monetary easing, cooling the growing market expectations for policy normalization.

Speaking this morning, Adachi said, "It seems that views are emerging that the bank is preparing the ground for an exit following the move made in October to add flexibility to the BOJ's yield curve control." He added, "However, we need to patiently continue with easing, and given the current state of the economy and inflation, we are not at the stage to discuss an exit strategy."

Adachi's remarks, in line with recent comments by BOJ Governor Kazuo Ueda, indicate that it is unlikely the bank will end the world's last negative interest rate policy at its board meeting next month.

Although inflation in the country has remained above the BOJ's 2 percent target for 19 months, Adachi stated that it is still necessary to confirm a virtuous cycle between wages and inflation before making a policy move.