Photo/Illutration The Bank of Japan headquarters (Asahi Shimbun file photo)

Bank of Japan Governor Kazuo Ueda said on Monday the likelihood of achieving the central bank’s inflation target was “gradually rising” and it would consider changing policy if prospects of sustainably achieving the 2% target increase “sufficiently.”

“If the virtuous cycle between wages and prices intensifies and the likelihood of achieving our price target in a sustainable and stable manner rises sufficiently, we will likely considering changing policy,” Ueda said, offering the clearest sign to date on the chance of ending ultra-easy monetary policy.

Companies are becoming more open to raising wages and prices, he said in a speech to the business lobby Keidanren.

Ueda said the BOJ had not decided on a specific timing for to change the loosest monetary stance of any major central bank, due to uncertainties over economic and market developments.

“We will carefully examine economic developments as well as firms’ wage- and price-setting behavior, and thereby decide on future monetary policy in an appropriate manner,” he said.

With inflation exceeding the target for well over a year, many market players expect the BOJ to boost short-term interest rates out of negative territory next year, with some betting on higher rates as early as January.

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