Bank of Japan policymaker Makoto Sakurai warned against "recklessly" ramping up stimulus just to prop up prices, blaming soft inflation on structural factors that were positive for the economy.[SHIZUOKA, Japan] Bank of Japan policymaker Makoto Sakurai warned against"recklessly" ramping up stimulus just to prop up prices, blaming soft inflation on structural factors that were positive for the economy.
"We shouldn't recklessly seek to achieve our price target with additional easing because doing so could accumulate imbalances in the economy," he said in a speech to business leaders in Shizuoka, eastern Japan, on Thursday.The remarks highlight a longstanding rift between those in the nine-member board who, like Mr Sakurai, are wary of the rising cost of prolonged easing, and those who feel the central bank can do more to fire up inflation.
The BOJ is in a bind. Years of heavy money printing have failed to drive up inflation, forcing it to maintain a radical stimulus programme longer than expected and leaving it with little ammunition to fight the next recession.