Future Rate Hikes May Be Slow and Cautious, BOJ Policymaker Says

Bank of Japan (BOJ) policy board member 浅田统一郎 said Thursday he was not entirely opposed to raising interest rates in the future, but any increases may need to be slow and cautious.

浅田 said Japan’s inflation rate had reached about 2%, leaving little purpose in pushing prices higher. He also said the neutral interest rate may be slightly above the BOJ’s current policy rate.

He said he is not considering proposing a rate cut. At each monetary policy meeting, he wants the BOJ to assess upside and downside risks to the economy and financial conditions before deciding policy. The comments add a board member’s view to the BOJ’s earlier outlook for further rate increases.