TOKYO: Bank of Japan board member Toyoaki Nakamura on Wednesday stressed the need to keep monetary policy ultra-loose to support an economy still recovering from the coronavirus pandemic-induced slump.

“Tightening monetary policy at a time when demand continues to remain lower than supply would put huge pressure on corporate and household activity,” Nakamura said in a speech.

“Recent price rises aren’t accompanied by wage increases yet”, which means the central bank ought to keep monetary policy ultra-easy for the time being, he said.

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Nakamura’s comments echo those of BOJ Governor Haruhiko Kuroda, who has repeatedly brushed aside the need to raise interest rates any time soon.

A former electronics firm executive, Nakamura warned that the war in Ukraine could keep raw material costs high and weigh on global economies, including that of Japan. He also said global financial conditions could tighten more than expected if overseas central banks raise interest rates too much to rein in stubbornly high inflation.