By Leika Kihara
KOFU, Japan (Reuters) – Bank of Japan board member Yutaka Harada said on Wednesday the central bank must ramp up stimulus “without delay” if risks to the economy threaten achievement of its inflation target.
Harada, a vocal advocate of aggressive monetary easing, said Japan’s economy was facing growing risks, including from slowing demand in China, simmering trade tensions, volatile stock price moves and weak private consumption.
There was also a risk that subdued inflation could heighten views among the public that prices won’t rise much and delay achievement of the BOJ’s 2 percent inflation target, he said.
“If the economy deteriorates to the extent that achieving the inflation target in the long term becomes difficult, it’s necessary to strengthen monetary easing without delay,” Harada said in a speech to business leaders in Kofu, eastern Japan.
Under a policy dubbed yield curve control, the BOJ aims to guide short-term interest rates at minus 0.1 percent and the 10-year government bond yield around zero percent.
(Reporting by Leika Kihara; Editing by Chris Gallagher & Shri Navaratnam)