Asada, a member of the Bank of Japan, said that before raising interest rates, the inflation target should be met with support for wage growth and demand. He added that he is not opposed to a rate hike and will base future decisions on an assessment of economic conditions.
Asada noted that companies are rapidly passing on higher oil prices to consumers through goods and services. He stressed that the central bank must respond flexibly to changes in economic conditions, inflation, and financial markets.
He also said the bank should focus on the ratio of bond assets to nominal GDP when reviewing the optimal size of its balance sheet.