Tightening monetary policy when demand remains insufficient compared with supply capacity would put significant downward pressure on the economic activity of firms and households, and could draw Japan's economy back into deflation. The second reason I believe the Bank should continue with monetary easing is that the current price rises have not been accompanied by wage growth.
Joachim brings with him a rich expertise crafted by a career that spans the BIS, KFW and, of course, 17 years with the Bundesbank. So, while this ceremony marks a change of office, it also represents a homecoming for Joachim.