Free Trial

MNI BRIEF: Slow Rate Hikes Expected - BOJ's Noguchi

(MNI) Tokyo
(MNI) TOKYO

Bank of Japan board member Asahi Noguchi said on Thursday that the pace of raising the policy interest rate will be very slow as it takes considerable time for inflation to continue increasing as a trend.

Noguchi was against ending the negative interest rate and yield curve control policy simultaneously at the March meeting, he told business leaders in Saga City.

Steady services price rises and the pass-through of wage hikes to sales prices are necessary to strengthen the wage-price virtuous cycle, he added, noting the second-round inflationary pressure has not strengthened sufficiently to achieve the bank’s 2% price target.

The BOJ must maintain accommodative monetary policy not only to keep favourable labour market conditions but also to achieve its inflation target, he added.

MNI reported this week the BOJ is watching the soft yen's impact on second-round inflation. (See MNI POLICY: BOJ Concern Grows Over Yen Impact On Wages, Prices)

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.