BOJ board member stresses on keeping rates steady

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BOJ board member stresses on keeping rates steady

TOKYO Bank of Japan board member Toyoaki Nakamura stressed on Wednesday that the need to keep monetary policy ultra-loose to support an economy still recovering from the coronaviruses epidemic.

In a speech, Nakamura said that tightening monetary policy at a time when demand continues to be lower than supply would put huge pressure on corporate and household activity.

He said that the central bank should keep monetary policy relatively calm for the time because recent price rises aren't accompanied by wage increases.

Nakamura's comments echo the views of BOJ Governor Haruhiko Kuroda, who has repeatedly brushed aside the need to raise interest rates some time soon.

A former electronics firm executive, Nakamura warned that the war in Ukraine could keep raw material costs high and affect global economies, including that of Japan.

He said global financial conditions could be tighter than expected if central banks in overseas raise interest rates too much to rein in stubbornly high inflation.