Investing.com - Prolonged financial market turmoil would hurt the real economy, although investor risk aversion is unlikely to trigger a global financial system crisis as seen in the past, Bank of Japan board member Koji Ishida said Thursday.
Ishida said the BoJ continues to support a positive growth cycle but called for structural reform and private-sector initiatives to lead the economy toward 2% inflation.
"Whether firms can raise prices depends on whether consumers will accept markups. Therefore, whether consumers can have a positive outlook on income and wage growth holds the key to a steady improvement in the underlying trend of prices," Ishida said.
Ishida is one of the four BOJ board members who voted against adding negative interest rates to the bank's monetary easing menu last month when the
nine-member board also decided to again push back the estimated timing of achieving 2% inflation by six months until around the first half of fiscal 2017.