The Bank of Japan released the "Main Opinions" of its Monetary Policy Meeting held last month.
At the meeting, the Policy Board members repeatedly pointed out that wage increases are essential to achieving stable price increases, and that the current monetary easing must be continued for that reason. It was also pointed out that there is a risk of disturbing the virtuous cycle.
With regard to the outlook for prices, Policy Board members commented, "It is highly likely that the relatively high rate of inflation will continue," and that, "As the price pass-through spreads, firms' behavioral principles based on the assumption that prices will not rise will change. There is a possibility that there will be more.”
On the other hand, it was pointed out one after another that wage increases are essential for the realization of stable price increases, and that monetary easing should be continued in order to raise the level of wages. There is also a risk of disturbing the virtuous cycle between prices and wages, which is undesirable."
However, regarding the maintenance of monetary easing, a policy board member pointed out that ``we need to keep an eye on side effects,'' and ``it is also important to continue to check how the future exit strategy will affect the market. It was also pointed out that