MNI: Himino Says BOJ Will Hike If Outlook Realised
MNI (SYDNEY) - Bank of Japan Deputy Governor Ryozo Himino said on Tuesday the BOJ will raise the policy interest rate and adjust the degree of monetary easing as it did in March and July last year, if the economy continues to evolve as expected.
“What I have described so far are the central scenario for the prices and the broad outlook for the monetary policy. But there are various risk factors at home and abroad, both upside and downside, and the policy should be conducted with due attention to them,” Himino told business leaders in Yokohama City.
The outlook for wage increases in fiscal 2025 were vital and each firm faces unique challenges, he added, noting wages hikes were not a simple matter. “I hope to see strong wage hikes in fiscal 2025 as we did in fiscal 2024, given the high ratio of firms’ reporting favourable business conditions, strong corporate profits, low labour share ratio, accelerating labour shortages, employees searching and changing jobs increasing activity, and the minimum wage raised last October," he continued.
“In conducting monetary policy, it is difficult but essential to judge the right timing. At the monetary policy meeting to be held next week, the board will have discussion to decide whether to raise the policy rate or not, based on the outlook to be compiled in the Report,” Himino said. “It is not desirable for the conduct of monetary policy to intentionally cause surprises, except in times of crisis whether perceptions need to be drastically changed.”