A Bank of Japan board member says that the central bank should stick with its easy monetary policy until more consumers are ready to accept that prices will continue to rise.
Noguchi Asahi was speaking in Nagasaki in southwestern Japan.
He said the BOJ will gradually adjust its accommodative stance when policymakers see inflation stabilize around their two percent target, accompanied by wage hikes.
Noguchi pointed out that while many businesses have become open to raising prices and wages when needed, consumers remain unconvinced that prices will keep going up.
Noguchi said it will take considerable time for them to come around as they have experienced years of deflation and low inflation in Japan.
The board member said it is important that the bank wait patiently for the consumer mindset to change.
The comments come as Japan’s new prime minister, Ishiba Shigeru, met with BOJ Governor Ueda Kazuo on Wednesday.
Ishiba said after the meeting that he personally thinks the country is not in an environment for an additional rate hike.