BOJ to Raise Rates Every Few Months: Policymaker Tamura

Kobe, June 25 (Jiji Press)–Bank of Japan policymaker Naoki Tamura said Thursday that the central bank expects to raise interest rates “once every few months.” The BOJ “has a plan in mind of raising rates by 0.25 percentage point once every few months to aim for 2 pct,” Tamura said at a press conference in Kobe, a city in western Japan, referring to what he sees as a neutral rate, which neither stimulates nor cools the economy. If the country faces a rise in upside risks to inflation, Tamura said that the BOJ “may need to consider increasing the pace of rate increases or raising rates at a bigger clip.” But he added that he does not see the need to consider such measures as of this moment. The BOJ raised rates by 0.25 point to 1 pct, a 31-year high, at its monetary policy meeting last week. At the meeting, the central bank also voted to stop reducing its Japanese government bond purchases next April, a decision that Tamura voted against. Tamura said the BOJ should normalize its monetary policy “at the fastest possible pace.” END [Copyright The Jiji Press, Ltd.]