MNI BRIEF: BOJ To Raise Rate Cautiously - Ueda
MNI (TOKYO) - The Bank of Japan will raise the policy interest rate if the economy and prices move in line with forecasts as real interest rates remain at considerably low levels, Governor Kazuo Ueda told reporters Wednesday.
“[The] wage-price is on track. But wage hikes [in the Rengo survey released on Friday] are a little strong,” he said, following the Board’s decision to hold the policy rate at 0.5%.
The results of Rengo’s first wage hike survey last Friday were largely within the bank’s forecast in January.
The BOJ has not changed its view on underlying inflation, which it sees below the 2% target, he added, although high prices are having adverse impact on households.
Ueda also said uncertainties exist for the global economy and markets linked to U.S. tariffs.
“We will carefully monitor developments of global economies and markets, and examine how they will affect our economic and price views,” he added. Ueda said underlying inflation was difficult for the BOJ to gauge accurately, adding the bank is considering new data and will release it in future, although he cast doubt over its potential quality. (See MNI POLICY: BOJ Mulls Underlying Inflation Rework)