It was premature for Japan to ease off its ultra-loose monetary policy, as the price outlook remains uncertain amid signs of weakness in overseas economies, Bank of Japan board member Seiji Adachi said in a speech. He pointed out that a downturn in the US economy would significantly impact domestic activity and weigh on prices. “Amid huge uncertainty over the price outlook, there are upside and downside risks. In the long run, however, the downside risks appear to be larger.” Adachi mentioned that for now there was no need to adjust the central bank’s yield curve control, adding that distortions in market pricing have dissolved.
