BOJ Policymaker Sees “Prime Opportunity” for Rate Hike

Hiroshima, Oct. 20 (Jiji Press)–Bank of Japan policymaker Hajime Takata said Monday that now is a “prime opportunity” to raise interest rates, as the central bank’s price stability target has nearly been achieved. In a speech in the western Japan city of Hiroshima, Takata made the remark as he explained his proposal for a policy rate hike at the BOJ’s policy-setting meeting in September. At the September meeting, Takata and fellow Policy Board member Naoki Tamura proposed a rate hike, but the majority voted against it. During the speech, Takata said that corporate behavior “has shown no signs of change” despite the impact of U.S. President Donald Trump’s tariff policy. He added that the positive momentum of Japanese businesses is unlikely to be disrupted. Meanwhile, he noted the need to consider the risk that “Japan might face greater-than-expected upswings in prices.” Takata did not indicate whether he would propose a rate hike at the next monetary policy meeting to be held later this month. END [Copyright The Jiji Press, Ltd.]