MNI: BOJ To Raise Rate, Degree of Easy Policy Increased - Ueda
MNI (NAGOYA) - Bank of Japan Governor Kazuo Ueda on Monday maintained his stance that the bank will continue to raise the policy rate if the economy realises the BOJ's outlook for economic activity and prices.
“Real interest rates have been negative and even lower than in the 2010s, and thus the degree of monetary accommodation can be judged to have actually increased,” Ueda told business leaders in Nagoya City.
However, he slightly downplayed an imminent hike, noting the timing of adjustments "will continue to depend on developments in economic activity and prices as well as financial conditions going forward.”
“The Bank needs to pay due attention to various risk factors, such as those pointed out in the latest Outlook Report, including the course of overseas economies, particularly the U.S. economy, and developments in financial and capital markets,” he added. “The BOJ will make policy decisions based on its latest assessment of the current state of and the outlook for economic activity and prices with reference to, for example, the data and information available at the time of each meeting.”
He added gradually adjusting the degree of accommodation in line with improvement in economic activity and prices will support long-term economic growth and contribute to achieving the 2% price stability target in a sustainable and stable manner.
Markets remain susceptible to geopolitical risks, he warned. The BOJ will continue to pay attention to whether fluctuations in global financial and capital markets will affect economic activity and prices in Japan, Ueda noted.
The BOJ board next meets Dec 18-19.