MNI BRIEF: BOJ Uchida's Sees No Specific Hike Timing
MNI (MELBOURNE) - Bank of Japan Deputy Governor Shinichi Uchida told reporters Wednesday the next hike will depend on the outlook for economic activity and prices, while the terminal rate level was difficult to identify.
The BOJ will continue to gauge the terminal rate by examining the impact of rate hikes on economic activity and prices, he said.
Earlier in the day, Uchida told business leaders, “It will be possible for the BOJ to proceed while examining the response of economic activity if it rases the policy interest rate at a pace in line with expectations.”
Uchida said, "I don’t bear any specific timing, and I don’t talk about markets’ view and about the view that the bank is thinking.”
Uchida pushed back against expectations that the bank would hike every six months, noting the BOJ had not set a specific timeline.
Bond market traders have priced in a terminal rate above 1%, the lower end of estimates made by bank officials. (See MNI POLICY: BOJ Shrugs Off JGB Yields, Yen Strength)
High prices, particularly of daily necessities, continue to impact consumers and the bank continues to monitor costs and wages to gauge their impact on consumption, he added. While the Bank has not provided concrete levels on wages, Uchida noted they will likely continue to increase stradily this year.