BOJ chief-to-be answers to lawmakers as Japan prices soar

Consumer prices in Japan have jumped by the most in more than 41 years, adding to pressure on the central bank to adjust its longstanding ultra-lax monetary policy. The report Friday came as the nominee to become governor of the Bank of Japan, Kazuo Ueda, told lawmakers its current strategy was “appropriate." Ueda said the BOJ's near-zero benchmark interest rate should continue “to solidly support the economy.” Ueda is expected to succeed BOJ Gov. Haruhiko Kuroda, the chief engineer of the current policy, when his second 5-year term ends in April. The BOJ's monetary policy was designed to fight off deflation, and Japan's inflation rate has stayed relatively low. The key price indicator, which excludes volatile fresh foods, rose 4.2% last month.