MNI BRIEF: BOJ Sees No Sharp Rise in 10-Year Rate: Senior Aide

The Bank of Japan does not expect the 10-year interest rate to rise significantly above the 1% reference level, according to a senior Bank of Japan official.

Kazuhiro Masaki, director-general at the BOJ’s monetary affairs department told lawmakers that the Bank has not set a rigid ceiling for the 10-year interest rate. He said the bank is focused on the speed and level of the rate and it will continue to buy government bonds to curb a sharp rise.

BOJ Deputy Governor Shinichi Uchida also told lawmakers the Bank is focused on whether wages will continue rising and how that will affect private consumption, which has been impacted by price rises.

Uchida said price rises caused by the weak yen and past increases in import prices are raising the financial burden at smaller firms and households, especially spending on food and daily necessities.

He added the BOJ wants to achieve price stability associated with the rises of corporate profits and wages and the bank continues to support an environment that will raise wages with easy policy.