MNI: More Data Needed Before Hike - BOJ Minutes
MNI (TOKYO) - Most Bank of Japan board members emphasised the need for further wage overseas economic data before raising the policy interest rate at the December 18-19 meeting, the minutes showed on Wednesday.
Many members pointed out that economic activity and prices had been developing in line with the Bank's outlook at the meeting. “Some members expressed the view that, at this stage, risks such as the upside risks to prices were not a reason to rush to raise the policy interest rate, as these risks had been contained to a certain degree,” the minutes showed.
“One of these members pointed out that, while import prices had been stable and yen carry trade positions had not been built up, on the domestic front, the cumulative increase in wages over the past three years had not caught up with that in prices, and it was therefore desirable that relatively high wage increases be achieved in 2025,” they showed.
The BOJ board raised the policy rate 25 basis points to 0.5% at its most recent meeting last week, with only one member dissenting. (See MNI BOJ WATCH: Ueda Flags More Hikes, No Clear Timeline)
“A few members expressed the view that it was necessary to confirm the momentum toward the annual spring labor-management wage negotiations, mainly through remarks by corporate executives at New Year events and reports at the January 2025 meeting of the general managers of the Bank's branches,” the minutes showed.
“Members then shared the recognition that the Bank needed to judge the specific timing of adjusting the degree of monetary accommodation after carefully examining various data and information. A few members pointed out that, when making the adjustments, it was desirable for the Bank to explain clearly the necessity and basis for doing so.”