Nakamura says the Bank of Japan will continue with its easy policy in order to hit its 2% inflation target
- Japan's economy showing clearer signs of pick-up
- expect japan's economy to recover ahead as impact of pandemic, supply constraints gradually subside
- Japan's consumer inflation likely to accelerate as impact of cellphone fee cuts drop off
- there is a risk China's zero-tolerance policy on covid, spike in omicron cases weigh on global growth, prolong global inflationary pressure
- there is uncertainty on outlook of corporate price-setting behaviour, pace in which japan firms pass on higher costs to households
- the Bank of Japan is ready to take appropriate steps as required with an eye on the impact of the pandemic on the economy
