NAGOYA, Japan (Reuters) - Bank of Japan Governor Masaaki Shirakawa said on Monday that markets are already pricing in expectations that the central bank will continue its powerful monetary easing until 1 pct inflation is foreseen.
Shirakawa made the remark when asked about the minutes of the BOJ’s October 30 meeting, released earlier on Monday, which showed that two newcomers on its board proposed strengthening its commitment to an easy monetary policy by changing the language on rising prices in its policy pledge.
“Japan’s consumer inflation may gradually exceed 1 percent if government and private-sector efforts to boost Japan’s growth potential bear fruit,” Shirakawa told a news conference after meeting business leaders in Nagoya in the central Japan prefecture of Aichi, home to automobile giant Toyota Motor Corp (7203.T).
The BOJ kept monetary policy steady last week after having eased for the second straight month in October, preferring to save its limited options for now as political pressure for bolder monetary expansion heightens after a general election in December.
Reporting by Leika Kihara; Editing by Michael Watson