BOJ Member Saw Need to Avoid Delay in Rate Hikes: Summary

Tokyo, March 30 (Jiji Press)–A Bank of Japan policymaker at the latest monetary policy meeting stressed the importance of the central bank being proactive in raising interest rates, according to a summary of opinions at the meeting released Monday. The bank will need to “consider adjusting the degree of monetary accommodation without long intervals” between rate hikes, the BOJ Policy Board member said at the March 18-19 meeting of the board, the summary showed. Many board members expressed concerns about inflation driven by higher crude oil prices and the yen’s depreciation amid escalating tensions in the Middle East. A board member said that adverse effects from the deteriorating Middle East situation, such as rising gasoline prices, “have started to emerge” while Japan’s economy has remained resilient. The member added, “Future developments will continue to warrant attention.” Another member cited the possibility of underlying inflation exceeding the BOJ’s price stability target of 2 pct, depending on the future course of the Middle East situation. Some members therefore expressed views that it would be desirable for the BOJ to continue monetary policy normalization. One policymaker said that the bank would need to raise its policy interest rate “without hesitation” if there are no signs of a significant deterioration in the economic environment or in the wage hike stance of small and midsize firms. END [Copyright The Jiji Press, Ltd.]