BOJ should not be overly cautious in raising rates, board member Koeda says
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
Oct 15 : Bank of Japan board member Junko Koeda said on Thursday the central bank should not become overly cautious about raising interest rates given considerable upside risks to inflation.
Koeda said Japan's financial conditions remain accommodative even after the central bank's past interest rate hikes, with little sign higher borrowing costs were hurting household and business activities.
Continued price increases across a wide range of consumer items suggest that underlying inflation is becoming anchored around the BOJ's 2 per cent target, she said.
With wages also rising steadily, Japan appears to be making more durable progress towards sustained inflation, Koeda said.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
"The BOJ should adjust interest rates in a timely manner with an eye on the economic and price situation, while keeping in mind the estimated range of the neutral interest rate," she said in a speech delivered to business leaders in Kumamoto, southern Japan.
The BOJ raised its key rate to a 31-year high last month, and signalled a shift toward preventing underlying inflation from overshooting its target, bolstering expectations of further policy tightening.
While the BOJ may pause in October, it is likely to drop hawkish hints that would reinforce dominant market expectations of a December hike, sources have told Reuters.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app