TOKYO, Feb 5 (Reuters) - Japanese Deputy Chief Cabinet
Secretary Seiji Kihara on Sunday stressed the need to achieve an
economy where inflation rises stably and sustainably, when asked
whether the next central bank governor should maintain
ultra-easy monetary policy.
"What's important is to create economic conditions where
prices rise stably and sustainably," Kihara told a television
programme.
"As for the next BOJ governor, the prime minister will
choose who he thinks is the most appropriate person," he said.
"It's important for monetary, and the broader macro-economic
policy, to be stable."
Kihara also said the government was ready to "respond
flexibly as needed," when asked whether additional steps could
be taken to cushion the economic blow from rising fuel and raw
material costs.
"The priority now is to raise wages. Achieving wage hikes is
the best growth strategy for us," he added.
Prime Minister Fumio Kishida's administration has offered
subsidies to curb utility and gasoline bills, and prodded firms
to hike wages, as it saw approval ratings hit by rising fuel and
food prices.
Kishida's choice of a successor to BOJ Governor Haruhiko
Kuroda, whose term ends in April, will also likely affect how
soon the central bank could phase out its massive stimulus as
inflation perks up well above its 2% target.
(Reporting by Leika Kihara; Editing by Lincoln Feast.)
Messaging: leika.kihara.reuters.com@reuters.net))
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