BoJ Chief Says Future Rate Decisions Will Be Data Dependent
November 17 2024 - 9:01PM
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Bank of Japan Governor Kazuo Ueda said the future interest rate
decisions will be data-dependent and avoided giving clear idea
about the timing of the next rate hike.
At each monetary policy meeting, the BoJ will make policy
decisions based on its assessment of economic activity and prices
with the data and information available at the time of each
meeting, Ueda told business leaders in Nagoya. "The actual timing
of the adjustments will continue to depend on developments in
economic activity and prices as well as financial conditions going
forward," he said. Ueda said the bank will pay due attention to
various risk factors, such as the course of overseas economies,
especially the US economy and developments in financial and capital
markets.
He avoided giving clear idea about the timing of the next
interest rate hike. Markets expect a quarter-point increase at the
next meeting in December.
At the October meeting, the board had maintained the key rate at
around 0.25 percent, which was the highest since late 2008.
The BoJ had ended its negative interest rate policy in March and
last lifted the benchmark rate in July to the current level.
Core inflation is forecast to be around 2 percent for the fiscal
2025 and 2026. The governor today said he expects inflationary
pressures stemming from wage increases to strengthen as an
improvement in economic activity and solid wage growth
continue.
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