The Bank of Japan Deputy Governor Masazumi Wakatabe has said on Wednesday that the Bank of Japan must not withdraw monetary stimulus prematurely even if rising raw material costs push up inflation.
"It's crucial to avoid tightening easy monetary conditions prematurely by looking just at near-term moves in the core consumer price index," Wakatabe said in a speech.
He explained that it is crucial to avoid a premature shift to monetary tightening with inflation very distant from the Bank of Japan's target.
''Even if Fed enters tightening cycle, that does not necessarily mean BoJ must adjust monetary policy too,'' he explained.
USD/JPY is steady on the comments.