[Government panel members urge the Bank of Japan to anchor inflation expectations around 2%] Jin10 News, January 6 – According to the minutes released on Tuesday, at the highest-level economic council meeting of the Japanese government held on December 25, committee member Masazumi Wakatabe stated that as cost-push factors dissipate, real wages are expected to turn positive by 2026, and inflation may ease. If everything proceeds smoothly, Japan's output gap will improve, and the economy may begin to show some promising signs. However, Japan also faces risks unique to an era of inflation, such as rising interest rates. The Bank of Japan should formulate policies to anchor long-term inflation expectations around 2%. As a proponent of accommodative fiscal and monetary policies, Wakatabe's remarks highlight that even Takata's reflationary advisors are increasingly concerned about the dangers of triggering panic among bond speculators and raising the financing costs of Japan's massive public debt.