The government's nominee for Bank of Japan governor has told a Lower House hearing that he intends to stick with the BOJ's massive monetary-easing program.

Economist Ueda Kazuo said, "If I am approved as governor, I would like to work closely with the government and implement appropriate policies in accordance with developments in 'economic activity and prices.' I would also like to create a situation where wages rise structurally in tandem with efforts by businesses and government policies.
I will try to achieve price stability not temporarily but in a sustainable manner."

"Structural wage increases" refer to workers earning higher salaries after upgrading their skills and moving into growth industries.

Ueda said there is still a great deal of uncertainty surrounding Japan's economy and those overseas.

He said consumer prices are rising at a rate of around 4 percent, higher than the BOJ's 2-percent inflation target. But he added that the inflation is mainly "cost-push," stemming from rising import prices, not strong demand.

Ueda said he thinks the cost-push factors will likely diminish and inflation will fall below 2 percent late in the year.

He said, "I think it will take a while to achieve the 2-percent target. I believe it's appropriate for the BOJ to continue with the current monetary easing, in view of the current 'economic activity and prices' and future prospects."