On the 14th, Bank of Japan Governor Kuroda gave a speech at a round-table conference with economic organizations in the Tokai region held in Nagoya, and reiterated his view that the current price rise was temporary. In order to realize this, he indicated his intention to pay close attention to trends in companies' efforts to pass on costs and wage increases.
Regarding the outlook for prices, Governor Kuroda said, "The rate of increase is expected to expand further toward the end of the year, partly due to the price hikes of a wide range of commodities." He reiterated his view that the rise in prices is temporary, given that the GDP will gradually decline.
He then said, "In addition to the need to closely monitor firms' price-setting behavior going forward, it is also important to see how firms' wage-setting behavior will develop." Toward this end, he expressed his intention to pay close attention to trends in companies' efforts to pass on price increases and wage increases.
In addition, Governor Kuroda stated that the Japanese economy was in the process of recovering from the coronavirus pandemic, and that "we are now at a point where we should firmly support economic activity by continuing monetary easing." emphasized.