MNI BRIEF: BOJ To Mull Hikes If 2% Probability Rises - Ueda
Bank of Japan Governor Kazuo Ueda said the board will consider a further increase to its policy interest rate if the probability of achieving the bank’s 2% target increases, the Asahi Shimbun reported on Friday.
Ueda in an interview with the newspaper said he expects the probability to increase from summer to autumn when hefty wage hikes in spring wage negotiations reflect prices.
The BOJ board on March 19 terminated the negative interest rate and raised the policy rate to a range of zero percent to 0.1%. (See MNI BOJ WATCH: Ueda Says Rate Path Will Depend On Prices)
“Given the current outlook for economic activity and prices, the BOJ anticipates that accommodative financial conditions will be maintained for the time being,” the BOJ said at the time, indicating it would change monetary policy if the outlook for economic activity and prices change.