HomeLive CommentsBoJ’s Nakagawa signals more rate hikes if economic outlook met

BoJ’s Nakagawa signals more rate hikes if economic outlook met

In a speech today, BoJ board member Junko Nakagawa indicated that the central bank will raise interest rates further if the economic outlook aligns with their forecasts. Nevertheless, she also emphasized the need to carefully consider how such moves might impact the broader economy and price stability.

“Given real interest rates are currently very low, we will adjust the degree of monetary support, from the standpoint of sustainably and stably achieving our 2% inflation target, if our economic and price forecasts are met,” she noted.

Nakagawa acknowledged Japan’s tight labor market and rising import prices as upside risks to the inflation outlook. While affirming that Japan’s economic fundamentals remain strong, she highlighted the importance to “look back upon market developments”” following July’s rate hike before making any further rate adjustments.

 

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