BOJ’s Nakagawa says 2% price goal isn’t sole purpose of BOJ policy

© Reuters. FILE PHOTO: A man wearing a protective mask walks past the headquarters of Bank of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020.REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) – Achieving 2% inflation is not the sole purpose of the Bank of Japan’s monetary policy as price moves could fluctuate around that level from time to time, its board member Junko Nakagawa was quoted as saying in an interview with Bloomberg.

While consumer inflation is hovering around zero, upward pressure is building partly due to the effect of rising oil and food costs, Nakagawa was quoted as saying.

The BOJ, however, will maintain its ultra-loose monetary policy to achieve its 2% price goal, she added, according to the interview conducted on Wednesday and published on Friday.

Nakagawa said there were benefits and drawbacks of a weak yen on Japan’s economy, as it boosts exporters’ profits but pushes up import costs for companies operating domestically, according to Bloomberg.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.