Will Japan's policy rate rise again…Bank of Japan governor again hints at "additional increase"
Summary
- Kazuo Ueda, Governor of the Bank of Japan, hinted at an additional increase in the policy rate.
- The Bank of Japan recently raised the policy rate from 0.5% to 0.75%, a 0.25 percentage point increase, bringing it to the highest level in 30 years.
- The governor mentioned that the rate-hike stance could continue, drawing the attention of investors.
Bank of Japan Governor Kazuo Ueda indicated on the 25th that he intends to further raise the policy rate.
According to Kyodo News and Nikkei, Governor Ueda said in a speech at an event of the Japan business federation Keidanren (Keidanren · Japan Business Federation) that if the economic and inflation outlooks materialize, "we will continue to raise the policy rate and adjust the degree of monetary easing."
He also said "(real interest rates) are at a very low level" and expected wage growth to continue next year.
Earlier, at the Monetary Policy Meeting on the 19th, the Bank of Japan raised the short-term policy rate, the policy rate, from '0.5%' to '0.75%', a 0.25%-point increase. This made Japan's policy rate the highest in 30 years since 1995.
At that time, Governor Ueda also hinted at further rate hikes, saying, "We will continue to raise the policy rate and adjust the degree of monetary easing."
Ahn Hye-won, Hankyung.com reporter anhw@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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