TOKYO: The Bank of Japan kept interest rates steady on Friday (Sep 20) and revised up its assessment on consumption, signalling its confidence a solid economic recovery would allow the central bank to raise interest rates again in coming months.
The Japanese national flag waves at the Bank of Japan building in Tokyo, Japan, on Mar 18, 2024. TOKYO: The Bank of Japan kept interest rates steady on Friday and revised up its assessment on consumption, signalling its confidence a solid economic recovery would allow the central bank to raise interest rates again in coming months.
"Japan's real interest rates remain extremely low. If our economic and price forecasts are achieved, we will raise interest rates and adjust the degree of monetary support accordingly." "The upgrade in the BOJ's consumption assessment shows it is becoming increasingly convinced that things are on track, with rising wages pushing up household income and spending," said Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities.Ueda has stressed the BOJ's readiness to raise rates further if inflation remains on track to durably hit its 2 per cent target, as the board currently projects.
Core consumer inflation hit 2.8 per cent in August to accelerate for the fourth straight month, data showed on Friday, keeping alive expectations for further rate hikes. But soft demand in China, slowing US growth and the yen's recent rebound cloud the outlook for the export-reliant country.
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