- Analytics
- News and Tools
- Market News
- BoJ’s Tamura: Don't have preset idea on pace of further rate hikes
BoJ’s Tamura: Don't have preset idea on pace of further rate hikes
The Bank of Japan (BoJ) board member Naoki Tamura is back on the wires on Thursday, noting that “don't have a preset idea on the pace of further rate hikes,” when asked whether the BoJ could raise rates again by year-end, or March end of the current fiscal year.
Additional comments
Unlike US and Europe, Japan's rate hikes are likely to be slow.
Exact timing on when Japan can see short-term rates reach 1% will depend on economic, price conditions at the time.
Data out so far show Japan's economy moving in line with forecasts made in BoJ July meeting.
Focusing too much on whether markets are stable or not could prevent BoJ from conducting monetary policy appropriately reflecting economic, price developments.
In long-term perspective, markets move in a way reflecting fundamentals.
Having said that, big, rapid market volatility is undesirable.
When markets are quite fragile, we need to set a period to ensure markets cool down.
Cannot say now whether BoJ could raise rates by end of this year.
Weak yen being reversed somewhat but rise in import costs seen earlier this year will likely affect consumer inflation with a lag.
Compared to when USD/JPY was at 160, upward risk to inflation has subsided somewhat.
BoJ must slowly raise rates in several stages, while closely watching how each rate hike affects economic activity.
Market reaction
These comments fail to move the Japanese Yen, as USD/JPY adds 0.32% on the day to trade near 142.80, as of writing.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
