Hajime Takata, a member of the Bank of Japan’s policy board, emphasized the central bank’s commitment to gradually scaling back its longstanding accommodative policy measures if economic indicators track as expected.
Speaking in Ishikawa, Japan, on Thursday, Takata stated that modifying the level of monetary easing would be necessary if inflationary patterns are consistent with projections.
Takata’s comments echo recent statements by Governor Kazuo Ueda, underscoring the BOJ’s intention to normalize policy settings in line with economic developments. Despite signaling a deliberate approach to any immediate changes, Takata highlighted the importance of monitoring financial markets following recent global turbulence.
The discussion follows a positive trend in Japanese workers’ real wages, which increased for the second consecutive month in July. Notably, a key indicator excluding bonuses and overtime revealed a significant 3% surge in wages among full-time employees.
The BOJ anticipates that robust wage growth will contribute to inflation by fostering a cycle of increased consumer spending and demand-driven price hikes. While many economists anticipate the BOJ maintaining its current stance at the upcoming policy meeting on Sept. 20, expectations are leaning towards a potential adjustment between October and January.
