MNI BRIEF: BOJ's Ueda Sees Possible July Lift To Policy Rate

Bank of Japan Governor Kazuo Ueda told lawmakers Tuesday the Board could raise the policy interest rate at the July 30-31 meeting when the bank announces the detailed plan to reduce its government bond buying.

Ueda, however, noted raising the policy interest rate will depend on developments of economic activity and prices at that time. He also any hike decision would be separate from the JGB reductions.

The BOJ will not send a strong message with regard to monetary policy through purchases of JGBs in case of either tightening or easing, he said. The BOJ wants to further confirm whether the underlying inflation trend continues to rise in line with the bank’s view through more data and information.

The BOJ board held its policy rate steady last week and noted a decision on its JGB buying would occur at the July meeting. (See MNI BOJ WATCH: Cuts To Bond Buys Detailed In July, Hike Eyed)