By Megumi Fujikawa

Bank of Japan policy board member Toyoaki Nakamura said Thursday that he is still not fully confident that wages and inflation will keep growing, adding that it is appropriate for the bank to maintain its current monetary policy for the time being.

"I am not confident about the sustainability of wage increases," Nakamura said in a speech to business leaders in the northern prefecture of Hokkaido.

"I believe that the effects of corporate reforms implemented by large companies that are leading economic growth haven't had a big impact on small- and medium-sized companies yet," he said.

Nakamura, a former executive at electronics maker Hitachi, dissented from the BOJ's decision in March to end negative interest rates.

He said Thursday that inflation might not reach the bank's 2% target after the fiscal year ending March 2026 if consumer spending weakens and companies stop raising their product or service prices.

Amid growing market expectations for further policy changes, the BOJ's board is scheduled to hold a policy-setting meeting on June 13-14.

Write to Megumi Fujikawa at

(END) Dow Jones Newswires

06-05-24 2238ET