NEW YORK, March 19 Bank of Japan board member
Takehiro Sato said on Wednesday the country's economy is more
resilient to rises in the consumption tax than when it was
previously hiked in 1997, suggesting that he saw no immediate
need to expand monetary stimulus further.
He also called on the government to pursue fiscal
consolidation to avoid long-term interest rates from spiking,
warning that there are limits to how much central banks can keep
unwelcome rises in bond yields in check.
"Japan's economy is steadily pursuing the path of achieving
our 2 percent price target ... Japan's economy is entirely
different from than in 1997, when the sales tax was raised to 5
percent," Sato said in a speech at the Japan Society, adding
that he also saw "a lot of encouraging signs" in wages.
(Reporting by Leika Kihara; Editing by Chizu Nomiyama)