MNI BRIEF: Economy To Drive Future Rate Hike Path - BOJ's Ueda
Bank of Japan Governor Kazuo Ueda refrained from elaborating on the pace of future interest rate rises, stressing further hikes will depend on economic developments and prices.
“We will decide on the policy interest rate like other central banks that are focused on how the economy and prices evolve,” Ueda told reporters.
The BOJ today ended its long-standing negative interest rate regime and tightened monetary policy for the first time since 2007. (See MNI WATCH: BOJ Nears Negative Rates Exit After Wages Survey)
Inflation expectations remain far from 2% and the BOJ must continue with its easy policy, he said, ruling out an imminent rate hike. But he added stronger-than-expected inflation and growing upside risks to prices would drive policy action.
The BOJ will also reduce the scale of its bond buying in future, but Ueda declined to provide a clear strategy. He also said that the Bank will leaves formation of interest rates to markets but it will prevent the long-term interest rate from rising sharply.