Kazuo Ueda, Governor of the Bank of Japan, stated, "If the economic and price outlooks are realized, we will raise the policy interest rate to adjust the degree of monetary easing."
According to NHK on the 31st, Governor Ueda made these remarks during a press conference held after the Monetary Policy Meeting that day, saying, "The current real interest rate is at an extremely low level."
Regarding the timing of future rate hikes, he said, "We do not have any preconceived notions and will make judgments by updating evaluations and forecasts of the economic and price situation using various data and information available at each meeting."
On the outlook for the U.S. economy, he stated, "There are many uncertainties, so it is necessary to closely monitor the trends," adding, "Downside risks are gradually being alleviated." Regarding the U.S. presidential election, he said, "It goes without saying that new risks may arise depending on the policies of the new president," and added, "We intend to review this at each meeting as well."
Kyodo News speculated that although Governor Ueda had previously said there was "time flexibility" when making rate decisions, his remark on this day that he "did not want to use that expression" implied that a rate hike could be possible at the December meeting.
At the Monetary Policy Meeting that day, the Bank of Japan decided to maintain the short-term policy interest rate, the benchmark rate, at 0.25%, marking the second consecutive rate freeze.
Previously, at the Monetary Policy Meeting in March, the Bank of Japan ended its negative interest rate policy by raising the benchmark rate for the first time in 17 years. At the July meeting, the rate was raised from 0?0.1% to 0.25%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
