BOJ's Sakurai warns against 'reckless' easing to hit price goal

BOJ's Sakurai warns against 'reckless' easing to hit price goal
FILE PHOTO: Bank of Japan's (BOJ) board member Makoto Sakurai poses for a photo after an interview with Reuters at the BOJ headquarters in Tokyo, Japan, September 1, 2016. Picture taken September 1, 2016. REUTERS/Toru Hanai Copyright Toru Hanai(Reuters)
By Reuters
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SHIZUOKA, Japan (Reuters) – Bank of Japan board member Makoto Sakurai said on Thursday the central bank should not ramp up stimulus just to prop up prices because inflation was being constrained by structural factors that were positive for the economy.

Companies’ efforts to boost productivity as they cope with labour shortages have prevented wages and prices from rising much so far.

“We shouldn’t recklessly seek to achieve our price target with additional easing because doing so could accumulate imbalances in the economy,” Sakurai said in a speech to business leaders in Shizuoka, eastern Japan.

(Reporting by Leika Kihara; Editing by Chang-Ran Kim)

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