Ella 
Bank of Japan Governor Kazuo Ueda speaks at a Japan Business Federation meeting. Ueda said that the possibility of achieving the central bank’s inflation target is gradually increasing, and if the prospects of sustainably achieving the 2% target increase sufficiently, the central bank will consider adjusting policies.
Key Quotes
The pace of service price increases has gradually accelerated, even as many companies seem to find it difficult to pass on rising labor costs.
If the positive wage-inflation cycle strengthens and sufficiently improves prospects for sustainable achievement of the price target, we will consider adjusting monetary policy.
We cannot predetermine the timing of future policy changes, but hope to make appropriate decisions while carefully studying economic developments, corporate wages and pricing behavior.
In an economy where inflation continues to rise, nominal interest rates will remain high, giving the central bank room to cut interest rates significantly if necessary.
When monetary policy works effectively, this means the risk of a sharp deterioration in the economy or a return to deflation is reduced.
The Bank of Japan patiently maintains loose monetary policy to ensure that signs of changes in corporate wage and pricing behavior persist.
The Bank of Japan will carefully study economic developments, including whether the positive wage-inflation cycle will strengthen, and make appropriate decisions to continue to achieve the price target.
This may take some time, but the upward pressure from past import price increases may gradually ease.
We will carefully study the economic situation and the wage and price-setting behavior of companies to determine future monetary policy in an appropriate manner.”
