TOKYO : The Bank of Japan (BOJ) may raise short-term interest rates early next year if sustained wage growth becomes a real prospect, Tsutomu Watanabe, an academic who participated in a key government panel on economic policy, told Reuters.Inflation will remain elevated as companies become more convinced
TOKYO : The Bank of Japan may raise short-term interest rates early next year if sustained wage growth becomes a real prospect, Tsutomu Watanabe, an academic who participated in a key government panel on economic policy, told Reuters.
His projection contrasts with the BOJ's view that inflation, which is now well above its 2 per cent target, will slow back below that level later this year as the boost from past rises in import costs dissipate. Before raising short-term rates, the BOJ must dismantle yield curve control by removing a 0 per cent target set for the 10-year bond yield, he said.
"If the BOJ sees prospects of sustained wage growth, it may raise short-term rates early next year," he said. Markets are rife with speculation that new BOJ governor Kazuo Ueda will gradually dismantle his predecessor's massive stimulus including YCC, which has drawn criticism for distorting bond market pricing and triggering excessive yen falls that pushed up import costs.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BOJ chief says to patiently keep ultra-easy policyTOKYO :Bank of Japan Governor Kazuo Ueda said on Tuesday the central bank will patiently maintain its ultra-loose monetary as there is some distance to sustainably achieve its 2 per cent inflation target, downplaying expectations for a policy change in the near-term.'We expect inflation to quite clearly slow
Read more »
BOJ's Ueda says days of 'low for long' inflation may be overTOKYO :Global central banks may already be facing a new economic environment where inflation will no longer revert to the low levels of the past, Bank of Japan Governor Kazuo Ueda said on Wednesday.Ueda said there is a view among academics that the current ongoing global inflationary pressure will eventually
Read more »
Sri Lanka central bank to hold rates as inflation stays highCOLOMBO : Sri Lanka's central bank is expected to keep rates unchanged at its policy meeting this week as it continues to support the debt-laden economy amid persistently high inflation.The island nation defaulted on its foreign debt for the first time in April last year, as the worst financial crisis sin
Read more »
Thai central bank to deliver final 25 bps interest rate hike on May 31 - Reuters pollBENGALURU : The Bank of Thailand (BOT) is expected to raise its key interest rate by 25 basis points (bps) on Wednesday and then hold it at that level for the rest of this year and the next, marking an end to a modest tightening cycle, a Reuters poll found.Unlike most economies in Southeast Asia, inflatio
Read more »
Trust Bank attracts more than S$1 billion in deposits, aims for breakeven by 2025Trust Bank is also aiming to become Singapore’s fourth largest retail bank in terms of customer numbers by the end of next year.
Read more »