BOJ to Continue Rate Hikes: Deputy Gov. Uchida

Tokyo, June 16 (Jiji Press)–Bank of Japan Deputy Governor Shinichi Uchida said Tuesday that the central bank will continue to raise its policy interest rate in line with economic and price conditions. Uchida was speaking at a press conference on behalf of BOJ Governor Kazuo Ueda, who is currently hospitalized for treatment of a liver cyst infection, after the BOJ’s Policy Board voted earlier in the day to raise the policy rate from around 0.75 pct to around 1 pct, a level unseen in 31 years. The deputy head explained that the risk of a significant economic slowdown has decreased thanks to progress in procuring raw materials from alternative sources, while there is a risk that underlying inflation will rise above the bank’s 2 pct inflation target. Uchida noted that the monetary environment will remain accommodative even after the latest rate increase. He added that the BOJ will manage monetary policy appropriately to avoid falling behind the curve. END [Copyright The Jiji Press, Ltd.]