MNI BRIEF: BOJ: Rate Hike Chance Nearing; Mull Patiently
MNI (LONDON) - Bank of Japan board members saw the need to gradually adjust easy policy but they didn’t see the need to rush to raise the policy interest rate at the December 18-19 meeting, the summary of opinions showed on Friday.
One member said underlying ionflation was picking up but before acting, the BOJ should "monitor the uncertainties over the U.S. economy until those uncertainties subside.”
Another member said that along with the U.S, policymakers needed to eye the annual wage round in the spring. The uncertainties around the US were noted by most member, with another also pointing to the fiscal concerns in Japan as well, saying it was appropriate for the BOJ to hold in December. Another member noted "risks to prices have become more skewed to the upside.”
Naoki Tamura, a hawkish member, proposed to raise the policy rate to 0.50% at the December, by citing stronger upside risk to prices, but his proposal was defeated by a majority. (see MNI BOJ WATCH: Ueda Keeps Jan Hike Alive, Notes Risks )