Overview
- Minutes released Monday show Governor Kazuo Ueda told Japan’s top economic panel that leaving policy too loose for too long could undermine stable attainment of the inflation target.
- Ueda said sustainable 2% inflation requires not only lifting prices from below but also avoiding an excessive overshoot, describing an approach aimed at a smooth landing.
- The discussion occurred at the Council on Economic and Fiscal Policy’s first meeting since Prime Minister Sanae Takaichi took office.
- The question to Ueda came from former BOJ Deputy Governor Masazumi Wakatabe, now a private-sector member of the council.
- The minutes noted no direct exchanges between Ueda and Takaichi, and recorded Takaichi’s pledge for the government to work with the BOJ to revitalize the economy.