Japan advisers urge focus on sustaining growth after inflation hits BOJ goal
SPY•Private-sector advisers to Japan’s government said reaching the Bank of Japan’s 2% inflation target is not an end in itself, urging a focus on higher incomes and productivity. Core consumer prices rose 2.1% year over year in September.
1. Growth beyond inflation
Four private-sector members of Japan’s Council on Economic and Fiscal Policy said that achieving the BOJ’s 2% inflation target is not enough to secure a lasting exit from deflation. They said weak consumption and unrealised gains in real incomes and long-term growth expectations remain concerns.
2. Risks and policy coordination
The advisers cited energy prices, financial market conditions and AI-related investment as risks to monitor. Prime Minister Sanae Takaichi said the government would work with the BOJ to achieve price stability and sustainable growth, while the BOJ has flagged further rate increases to guard against upside price risks.
