Royston Carr - Wakatabe says current pace of easing will result in higher inflation in the long term.

TAIPEI, TAIWAN, April 17, 2018 /EINPresswire.com/ -- Newly-appointed deputy governor of the Bank of Japan, Masazumi Wakatabe, has stated that Japan can increase its inflation expectations by maintaining its ultra-easy monetary policy. Royston Carr analysts believe this indicates that the new BOJ deputy will not call for any additional stimulus in the near future.

Wakatabe also stated that he was well aware of the of the potential risks of ongoing easing, including the harm that can be caused by many years of low interest rates to the profit margins of financial institutions. Wakatabe commented that the pros and cons of the BOJ's monetary policy shift as time progresses.

Royston Carr analysts say that Wakatabe has long favored aggressive easing and they anticipate that the BOJ deputy could call for an increase in stimulus at some point in a bid to increase consumer prices.

However, during last week's meeting, Wakatabe expressed his satisfaction with the current pace of easing, saying that it has already benefitted the Japanese economy and created much-needed employment.

Royston Carr analysts say that while Japan's inflation has not yet reached the official target of 2 percent, price growth is gradually increasing.

Wakatabe stated that inflation expectations can be heightened if Japan maintains its current pace of monetary easing which will lead to a gradual increase in rates in the long term.

Royston Carr analysts say there is some concern that the Bank of Japan's ultra-easy monetary policy could result in runaway inflation but Wakatabe insisted that the BOJ was well-equipped to deal with this outcome if it were to materialize.

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