BOJ will 'discuss' rate hike despite uncertainties, Governor Ueda says
Bank of Japan Governor Kazuo Ueda said the policy board will 'discuss' the option of a rate hike despite global uncertainties. Nikkei Asia reported that the comments were closely watched in the yen and government bond markets.
Nikkei Asia · Staff WriterAccording to Nikkei Asia, Ueda said at a Tokyo press conference that an option to raise the 0.5 percent policy rate further is on the table. The governor added that the decision will depend on the inflation outlook and external factors including US monetary policy.
Inflation ran at 2.8 percent in March, above the bank's 2 percent target. Nikkei Asia reported that policy board member Hajime Takata has said a move should be made before year end.
Financial market reaction was mixed. JPMorgan Asia-Pacific chief economist Sin Beng Ong said the bank's communication signals gradual normalisation. Nikkei reported that the yen fluctuated around 152 against the dollar and the 10-year Japanese government bond yield approached 1.12 percent. This article is not investment advice.
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