BOJ Must Avoid Tardy, Premature Rate Hike: Policymaker Noguchi

Oita, Nov. 27 (Jiji Press)–The Bank of Japan must raise its policy interest rate at a timing that is not too late and not too early, BOJ policymaker Asahi Noguchi said Thursday. Speaking at a press conference in the southwestern Japan city of Oita, Noguchi added that the downside of a delayed rate hike, including excessive price increases and economic expansion, will become larger the closer Japan is to reaching the (BOJ’s 2 pct) price stability target. The policymaker had said in a speech in September that “the need to adjust the policy interest rate is increasing more than ever.” He explained that his way of thinking itself has not changed significantly since then, indicating that the time for a rate hike was fast approaching. Noguchi said that he will pay attention to the status of wage hikes for next year’s “shunto” spring labor-management negotiations when making decisions on monetary policy management. But he explained, “This doesn’t necessarily mean that no action can be taken until the shunto is over,” suggesting the possibility of a rate hike before next March, when most negotiation outcomes are expected to become apparent. END [Copyright The Jiji Press, Ltd.]