The Bank Of Japan Believes That There Are Still Many Uncertainties In The Japanese Economy

Toyoaki Nakamura, a member of the Bank of Japan's review committee, said there is still uncertainty about how quickly Japanese companies will pass on rising raw material costs to household consumers, which is one of the risks facing the economy. However, as the impact of the epidemic and supply chain constraints weaken, the local economy is expected to continue to recover. The Bank of Japan will maintain its ultra-easy policy to ensure the economy is strong enough to accelerate inflation to its 2% target. Bank of Japan officials will have to reiterate the easing policy, but since the Japanese government only passed a massive fiscal stimulus policy late last year, the market generally believes that the Bank of Japan has few options for more aggressive policy.