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Japan Abe adviser, in reversal, sees no need for BOJ to ease

TOKYO (Reuters) – A key economic adviser to Japanese Prime Minister Shinzo Abe, reversing his previous position, said on Wednesday that he sees no need for the Bank of Japan to add to its massive stimulus as the economy is pulling out of deflation.

Etsuro Honda, a prominent outside architect of Abe’s reflationary policies, told Reuters the economy appears to be on track to hit the BOJ’s 2 percent inflation target next year.

“It would be a different story if GDP, consumption and real wages were to plunge very sharply in April-June,” Honda said in an interview. “But looking at the situation so far, I can’t really see any reason to act.”

This marks a sharp contrast with remarks early this year by the University of Shizuoka professor, who had advocated proactive easing to cushion the economic blow from an April increase in the national sales tax.

(Editing by William Mallard and Edmund Klamann)

 

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