Economic Adviser Says BOJ Risks Falling Behind on Inflation Control

A private-sector member of Japan’s Council on Economic and Fiscal Policy warned that the Bank of Japan may be falling behind the curve as rising prices are already eroding household purchasing power. Speaking at the council’s 7 August meeting, the adviser said the central bank must address inflation that is “already affecting people’s lives.” The council member added that policy priorities have shifted: whereas officials once sought to push inflation up to 2%, the immediate task is now to stabilise price growth around that level. The remarks increase scrutiny of Governor Kazuo Ueda’s board ahead of its next policy review, after months of speculation over when the BOJ will move away from its ultra-easy stance.