Nakagawa acknowledged that a price rise for a limited number of goods had fueled recent inflationary pressures. He believes this trend will slow down but warns that if corporate inflation expectations increase, it could lead to higher customer costs and potentially result in further inflationary pressures.
Balancing Easy Policy with Risks
Despite the current economic climate, the BoJ intends to maintain its easy monetary policy stance while taking measures to mitigate any negative side effects. Nakagawa states, "BoJ will maintain easy policy while taking steps to curb side effects."